Which of the Following Events Will Help to Burst an Asset

question 59

Multiple Choice

Which of the following events will help to burst an asset price bubble?

• A) Speculative demand for the asset quickly declines.
• B) Speculative demand for the asset quickly increases.
• C) New information leads buyers to doubt that prices will continue to increase in the future.
• D) A and C are correct

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Definitions:

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