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which of the situations describes a bandwagon effect caused by a lack of confidence in markets?
a. Hank and Sid start to root for a local sports team only when the team makes it to the national championships.

b. Shirley sees Jane with a new pair of fashionable jeans and decides to buy the same pair.

c. Carol moves out of her parents' house and into an apartment of her own. Shortly thereafter, her brother does the same.

d. Rick notices that his brother Steve and many other investors have reduced the amount they invest, and Rick decides to do the same.

Respuesta :

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A situation that describes a bandwagon effect that was caused by a lack of confidence in the market is d. Rick notices that his brother Steve and many other investors have reduced the amount they invest, and Rick decides to do the same.

How can the bandwagon effect affect the markets?

The bandwagon effect refers to a phenomenon where people engage in certain activities and behaviors because they see other people doing it. They believe they have a better chance if they act the way other people act. In the financial markets, the bandwagon effect can either improve confidence in the market, or reduce it.

For instance, if many top and famous investors are buying shares, other people might buy shares as well because they would be more confident seeing the top investors going into the market. The bandwagon effect can also lead to a lost of confidence if people, like Rick, see people like Steve and other investors, reducing their investment. This would make them feel that something is wrong, and so they lose confidence in the market.

Find out more on the bandwagon effect at https://brainly.com/question/28367663

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