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I just heard on NPR about a study that has been done which claims that the emotions people see in neutral or ambiguous faces is reflective of their own emotions. For instance angrier people will more often see neutral faces as angry, depressed people will see neutral faces as depressed... Also, they said that there is a cycle where aggressive people see others as angrier than they are, which does indeed make those around them more aggressive.
Thoughts?
A lot has been written on this. Search google.com for the following words...
free association Freud
inkblot test
Also sometimes people do this when they accuse other people of "doing something". Like being a thief, cheating, lying, etc. The people are themselves that way, so think others are as well (when in fact they are not). Quite amusing when people do this!