Which of the Following Occurred During the Crash of 1987

question 34

Multiple Choice

Which of the following occurred during the Crash of 1987?
I. market prices were kept up-to-date which increased investors' anxiety
II. the market declined another 5 percent within the 2 days following the crash
III. trading volume exceeded the exchanges' capacities
IV. NASDAQ went off-line

• A)I and II only
• B)III and IV only
• C)I, II and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more conflicting beliefs, ideas, or values.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behavior.

Insufficient Justification Effect

A phenomenon in psychology where individuals change their attitudes or beliefs due to the realization that their actions cannot be justified by the external rewards or punishments alone.

Cognitive Dissonance Theory

A theory which suggests that we experience discomfort or dissonance when our beliefs, values, or behaviors are in conflict, leading us to change one to reduce the dissonance.