Match the economic theory with its application or implication in financial history.

Keynesian Economic Theory

Answer $1$ Question $7$Choose...May explain the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Underpins government intervention in the economy during the $2008$ Financial Crisis.Highlights the conflict between individual incentives and collective well$-$being in the Acid Rain Program.Explains the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Offers insight into the speculative behaviors observed in Tulip Mania and the Dot$-$com Bubble.

Market Over$-$Reaction

Answer $2$ Question $7$Choose...May explain the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Underpins government intervention in the economy during the $2008$ Financial Crisis.Highlights the conflict between individual incentives and collective well$-$being in the Acid Rain Program.Explains the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Offers insight into the speculative behaviors observed in Tulip Mania and the Dot$-$com Bubble.

Tragedy of the Commons

Answer $3$ Question $7$Choose...May explain the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Underpins government intervention in the economy during the $2008$ Financial Crisis.Highlights the conflict between individual incentives and collective well$-$being in the Acid Rain Program.Explains the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Offers insight into the speculative behaviors observed in Tulip Mania and the Dot$-$com Bubble.

Behavioral Finance

Answer $4$ Question $7$Choose...May explain the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Underpins government intervention in the economy during the $2008$ Financial Crisis.Highlights the conflict between individual incentives and collective well$-$being in the Acid Rain Program.Explains the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Offers insight into the speculative behaviors observed in Tulip Mania and the Dot$-$com Bubble.

The Concept of Moral Hazard

Answer $5$ Question $7$Choose...May explain the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Underpins government intervention in the economy during the $2008$ Financial Crisis.Highlights the conflict between individual incentives and collective well$-$being in the Acid Rain Program.Explains the rapid sell$-$off during the $1987$ Stock Crash due to over$-$reliance on portfolio insurance.Offers insight into the speculative behaviors observed in Tulip Mania and the Dot$-$com Bubble.