In an Asset-Price Bubble, Asset Prices Rise Because

question 72

Multiple Choice

In an asset-price bubble, asset prices rise because:

• A)people expect them to rise.
• B)interest rates fall, increasing the present value of expected earnings.
• C)expected earnings rise.
• D)of a fall in the risk premium.

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Definitions:

Violent Role Models

Individuals who exhibit aggressive behavior and may influence others, especially children, to act in a similar manner.

Functionalism

A perspective in sociology and psychology that emphasizes the importance of the roles that components of a society or mind serve in making the whole functional.

Behavior Analysis

A field of psychology that studies the effects of environmental influences on behavior, often through the use of the experimental analysis of behavior.

Functionalism

A school of psychology that focuses on the purpose and function of behavior and mental processes.