Asset price bubbles are not sustainable because:
A. they do not reflect an increase in the real productive value of the asset.
B. invariably the government steps in to burst the asset price bubble.
C. investors eventually run out of assets with which to purchase the good.
D. people realize that leverage really doesn't work mathematically.
Answer: A
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If the price of a good increases, ________
A) the budget constraint shifts to the right B) the budget constraint shifts to the left C) the consumer surplus increases D) the consumer surplus decreases
The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by ________
A) $5.00 an hour B) $2.50 an hour C) $7.50 an hour D) $0.50 a bagel
Refer to Table 1-1. What is Lydia's marginal benefit if she decides to stay open for an extra two hours instead of one hour?
A) $25 B) $50 C) $75 D) $125
During the period in which the Navigation Acts guided colonial trade, international trade was safe and many countries fairly engaged in commercial trade
Indicate whether the statement is true or false