Reply To: Lesson 2 – Absolute Thinking vs. Relative Thinking – Discussion

[Kyle Pearce]

This is a great wondering and a great example of additive vs relative thinking.

When you say “it increased by”, that is additive thinking language.

When you say “it quadrupled” or “4x’ed” or “it is 400% of its original value”, that is multiplicative thinking language.

When we talk about investments, often times people interchange the type of thinking without really knowing it.

So my take away from this is – as long as you know the language, you can describe the change in quantity in an accurate way.