One major consequence of the planning fallacy is that Multiple Choice people may spend more resources to insure themselves against rare events, but leave themselves uninsured against more common events. someone could persist in pursuing a failed policy despite overwhelming evidence of the failure. major business projects may create bottlenecks in the organization because they are not completed as scheduled. Correct some people may wrongly believe in their forecasting ability to predict future outcomes of risky investments.

Suppose that the u. s. dollars-mexican pesos exchange rate is fixed by the u. s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs. which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u. s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u. s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u. s. dollars.