Tom strongly believes that raising tax rates for the rich is the only way to steer the economy out of recession, as it is likely to generate greater tax revenues for the government. When his friend Sam pointed out that the government receives greater tax revenues when tax rates are uniformly low for all Americans, Tom refused to accept Sam's input and change his attitude. Interestingly, the input provided by Sam further strengthened Tom's initial attitude. This is an example of a:

Tom refused to accept Sam's input and change his attitude. Interestingly, the input provided by Sam further strengthened Tom's initial attitude. This is an example of a: contrast effect.

Explanation:

A contrast effect is the term used in psychology to explain the aggravation or decline, cognition or related performance as a result of consecutive or simultaneous exposure to a stimulus of lesser or greater value in the same dimension.

The type of contrast depends upon the how the participant considers a situation. There are two types of contrast effect. They are

i)Positive contrast effect

ii)Negative contrast effect

In the above scenario, Tom and Sam were discussing about the tax rates. Conflict arises between them when Sam objects Tom’s view on tax rates. Tom got aggravated and strengthened his attitude.