The two main causes of an asset price bubble are:
A. herding and budget deficits.
B. herding and budget surpluses.
C. budget surpluses and leverage.
D. herding and leverage.
Answer: D
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Indicate whether the statement is true or false
A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. an increase in the supply of fruitcake. B. a decrease in the supply of fruitcake. C. no change in the supply of fruitcake, but the demand would increase. D. no change in the supply of fruitcake, but the demand would decrease.
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