Practice one SAT question at a time
Questions come from the Bluebook question bank. Made by Iskaa303 (Iskander Madikhan).
Economists have demonstrated that herding—in which individuals converge on the same action by imitating the economic decisions of one or more peers—occurs among investors. Investigating whether herding also occurs among nations in matters of economic policy, Maru Etta-Nkwelle examined changes in the foreign currency reserves of emerging economies in various world regions in the years following the widespread financial crisis of 1997. Etta-Nkwelle posited that herding would manifest in regional peer countries converging on the same foreign currency accumulation rate regardless of each country’s observable circumstances. She found that Asian countries showed evidence of herding but African countries did not.
Based on the text, which finding, if true, would best account for the discrepancy Etta-Nkwelle observed?
Practice one SAT question at a time
Questions come from the Bluebook question bank. Made by Iskaa303 (Iskander Madikhan).
Economists have demonstrated that herding—in which individuals converge on the same action by imitating the economic decisions of one or more peers—occurs among investors. Investigating whether herding also occurs among nations in matters of economic policy, Maru Etta-Nkwelle examined changes in the foreign currency reserves of emerging economies in various world regions in the years following the widespread financial crisis of 1997. Etta-Nkwelle posited that herding would manifest in regional peer countries converging on the same foreign currency accumulation rate regardless of each country’s observable circumstances. She found that Asian countries showed evidence of herding but African countries did not.
Based on the text, which finding, if true, would best account for the discrepancy Etta-Nkwelle observed?