An asset price "bubble" is created when
A. buyers base their purchase decision upon their expectation that the asset's price will rise.
B. buyers base their purchase decision upon solid fundamentals.
C. sellers base their sale decision upon their expectation that the asset's price will fall.
D. sellers base their sale decision upon solid fundamentals.
Answer: A
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Why do CDs have lower rates of return than stocks?
A) CDs are much riskier investments than stocks. B) CDs are less risky than stocks. C) CDs are not taxed while stock s returns are taxable. D) CDs are not as liquid as stocks.
Advance-purchase discounts offered by airlines are an example of
a. Direct price discrimination b. Indirect price discrimination c. All of the above d. None of the above
According to 2014 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?
a. Black females had higher labor-force participation rates and lower unemployment rates compared to white females. b. Black females had similar labor-force participation rates and higher unemployment rates compared to white females. c. Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. d. Black females had lower labor-force participation rates and higher unemployment rates compared to white females.
If spending growth is 6% and inflation is also 6%, this means that:
What will be an ideal response?