When People Buy Assets Simply Because They Believe the Assets

question 166

Multiple Choice

When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:

• A) a recession.
• B) unemployment.
• C) inflation.
• D) an asset-price bubble.

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Definitions:

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Pitch

The perceived frequency of a sound, determining its "highness" or "lowness."

Amplitude

The height or strength of a wave signal, determining its intensity or power, often used in the context of sound, light, or electronic signals.

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear.