When Financial Markets Are More Efficient

question 43

Multiple Choice

When financial markets are more efficient

• A)resources are allocated more efficiently.
• B)living standards around the world should rise.
• C)interest rates are lower.
• D)Both a and b are correct.

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Definitions:

Aggression Model

A theoretical framework explaining the factors that lead to aggressive behavior in individuals.

Displaced Aggression

Aggressive behavior directed at a target other than the source of provocation, often due to the inability to confront the original source of frustration.

Social Psychology

A branch of psychology that examines how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Weapons Effect

A psychological phenomenon where the mere presence of a weapon can increase aggressive thoughts, feelings, and behaviors.