Think about the two examples of a power law we learned one in which

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Ogles School of Hair Design, Arlington TX **We aren't endorsed by this school
Course
ECN MISC
Subject
Economics
Date
Nov 4, 2023
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1
Uploaded by HighnessSnow18693 on coursehero.com
Think about the two examples of a power law we learned: one in which the population distribution is exponential, while wages grow exponentially with age; and the other in which relative incomes follow a random walk. The power-law is believed to also hold in the stock market. In light of this, which of the following statements do you think are relevant? Question 1 Select one or more: a. Since new technologies made investing in the stock market easier, more people may have begun investing, making stock market returns more unequal. b. Increasing risk in the stock market hurts wealthy investors, reducing inequality in the stock market. c. The Bank of England must raise interest
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