The Theory That Crowds Act as They Do by Developing

question 85

Multiple Choice

The theory that crowds act as they do by developing new norms appropriate to the situation is called

• A) collective mind theory.
• B) emergent norm theory.
• C) majestic norm theory.
• D) equilibrium theory.

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Definitions:

Budget Deficit

The financial situation where government’s expenditures exceed its revenues within a specific time period, leading to borrowing or debt accumulation.

Central Bank

An institution that manages a country's currency, money supply, and interest rates, and oversees the commercial banking system.

Open Market Purchases

Transactions by a central bank in which it buys securities from the market to increase the money supply and encourage economic activity.

Open Market Sales

The selling of government bonds and securities in the open market to control the money supply and influence interest rates.