Emergent Norm Theory Points Out That Crowds Are Largely Irrational

question 147

True/False

Emergent norm theory points out that crowds are largely irrational.

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Long-Run Exchange Rate Risk

The potential for financial loss over time due to fluctuations in foreign exchange rates affecting international investments and transactions.

International Firm

A company that conducts its operations and business activities in more than one country.

Economic Conditions

The state of the economy at a given time, influenced by factors such as GDP growth rates, unemployment levels, and inflation rates.