A Financial Bubble Starts to Inflate When

question 78

Multiple Choice

A financial bubble starts to inflate when:

• A)investors become irrationally optimistic that an asset's price will continue to rise.
• B)investors become irrationally pessimistic that an asset needs to be sold immediately.
• C)a good experiences a rise in demand that is unexplained,increasing its price.
• D)inflation begins to accelerate,and monetary and fiscal policy are ineffective at slowing its growth.

Understand the role of the environment and unconscious motives in shaping behaviour according to behavioural and psychoanalytic perspectives.

Recognize the impact of psychoanalytic theory on psychology, including its influence on developmental and abnormal psychology.

Appreciate the significance of consciousness and its purpose as viewed within different psychological perspectives.

Understand the concept of learning through behaviour modification and the role of environmental stimuli.

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Definitions:

Efficiency

The ability to achieve a goal using the least possible amount of resources, such as time, money, and effort.

Process Reengineering

The essential overhaul and significant transformation of business operations to attain substantial enhancements in vital performance indicators.

Systems Bottlenecks

Points of congestion in a system where the flow of data is impaired or stopped entirely, often leading to delays and inefficiency.

Duplication

The act of copying or replicating something, which can result in unnecessary redundancy or repetition.