One behavioral school of thought holds that in complex situations where it is difficult to estimate probabilities,

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One behavioral school of thought holds that in complex situations where it is difficult to estimate probabilities, simple heuristics are generally better than complicated heuristics. Discuss this perspective in the context of the “one size fits all” discount rate heuristic.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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