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Question
Which of the following refers to the bandwagon effect?
A. When securities are purchased in one market for immediate resale in another
B. When dominant enterprises exercise a degree of pricing power, setting different prices in different markets to reflect varying demand conditions
C. When traders move like a herd, all in the same direction and at the same time, in response to each others' perceived actions
D. When governments routinely intervene in international trade, creating tariff and nontariff barriers to cross-border trade
E. When the output of goods and services grows at a lesser rate than that of the money supply
Answer
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