Response lag is the time it takes for corrective fiscal and monetary policies to result in changes since the time of their implementation.

 

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Relativity trap is a psychological trap which leads consumers to make irrational choices when making spending decisions. This trap can be spotted in traders’ decision-making process as well.

 

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Red ink is a term the refers to financial losses. It derives from the time ledgers were raised by hand and red ink pens were used to denominate losses and negative numbers.

 

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