Market bubbles such as the technology bubble of the 1990s and the housing bubble of 2004-2007 are best explained by

A) the efficient market hypothesis.
B) behavioral finance and economics.
C) rational expectations theory.
D) anomaly theory.


Answer: B

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Which of the following is true of a trade-in allowance?

A. It is a price reduction to stimulate sales of newly introduced products. B. It forces managers to reduce the list price. C. It allows managers to reduce the effective price without reducing the list price. D. It is used to save old products from being removed from the market.

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