A financial bubble starts to inflate when:
A. investors become irrationally pessimistic that an asset needs to be sold immediately.
B. investors become irrationally optimistic that an asset's price will continue to rise.
C. inflation begins to accelerate, and monetary and fiscal policy are ineffective at slowing its growth.
D. a good experiences an unexplained rise in demand increasing its price.
Answer: B
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Which of the following statements is true about optimal two-part tariff and perfect price discrimination for a given demand curve?
A) The total revenue received under an optimal two-part tariff could be greater than, less than, or equal to that received under perfect price discrimination, depending on the fixed-fee portion of the two-part tariff. B) The total revenue received under the two pricing schedules is the same. C) The total revenue received under an optimal two-part tariff is less than that received under perfect price discrimination. D) The total revenue received under an optimal two-part tariff exceeds that received under perfect price discrimination.
Which of the following is potentially an option to save Social Security?
a. Increasing the payroll tax rate b. Increasing the age required for full-time benefits. c. Implementing means testing d. all of the above
Human capital is the amount of
a. capital available to workforce. b. skill embodied in the workforce. c. output the labor force can produce. d. healthy work force in the total population.
Which of the following is an accurate statement about external economies of scale?
a. They involve a rise of market prices. b. They involve a reduction of input costs. c. They involve a shift of the MC curve upward. d. They involve a shift of the ATC curves to the right.