The example of the students "remembering" a stop sign instead of a yield sign in the Loftus experiment illustrates the ________ effect which is based on ________.

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The example of the students "remembering" a stop sign instead of a yield sign in the Loftus experiment illustrates the misinformation effect, which is based on suggestibility. The participants were given misleading information (i.e. the word "stop" instead of "yield") that influenced their memory of the event, leading to false or inaccurate recollections. This type of memory distortion is a prime example of the power of suggestion and the potential for external factors to alter our perceptions and memories.

The Example of the Students "Remembering" a Stop Sign Instead