Which of the Following Refers to the Bandwagon Effect

question 38

Multiple Choice

Which of the following refers to the bandwagon effect?

• A)Securities are purchased in one market for immediate resale in another.
• B)Dominant enterprises exercise a degree of pricing power,setting different prices in different markets to reflect varying demand conditions.
• C)Traders move like a herd,all in the same direction and at the same time,in response to each other's perceived actions.
• D)Governments routinely intervene in international trade,creating tariff and nontariff barriers to cross-border trade.
• E)The output of goods and services grows at a lesser rate than that of the money supply.

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Definitions:

Government

The system or group of people governing an organized community, often a state.

Active Approach

A strategy or policy that involves direct intervention or action, often by the government or an organization, to achieve a specific goal.

Passive Approach

An investment strategy that involves minimal buying and selling actions, often associated with index fund investing.

Aggregate Supply

The complete inventory of products and services that enterprises in a domestic economy aim to sell throughout a specified period.