Economy Often Leads Us Down Wrong Path

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Another week, another spate of bad economic news — surging inflation, sliding stock prices and gas prices hitting an all-time high. It's all changing the way we make economic decisions.

First, NPR's Yuki Noguchi visits a car dealership in Sterling, Va., where just about every driver coming through the door is trying to unload a truck or SUV. That's because many of the sellers can't pay for a full tank of gas anymore. What these hopeful sellers are finding is the market for large cars is dropping so quickly that they just might be stuck with their gas guzzlers.

Then author and behavioral economist Dan Ariely discusses why so many of us make economic decisions that are so wrong.



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