Speculative bubbles that helped trigger the Great Depression and the Global Financial Crisis involve
A) money.
B) banks.
C) expectations.
D) all of the above.
E) none of the above.

Question

Quizplus · Accepted Answer

Speculative bubbles involve money as people invest their funds in hopes of making a profit. Banks may also be involved in providing loans for these investments. However, the primary driver of speculative bubbles is expectations, as investors believe that the value of their investments will continue to increase, leading to a cycle of buying and selling that ultimately results in a bubble bursting. This was the case with the stock market in 1929 and the housing market in the 2000s, both of which led to economic crises.

Speculative Bubbles That Helped Trigger the Great Depression and the Global