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A Bubble in the Housing Market Occurs When, After Watching

Question 42

Multiple Choice

A bubble in the housing market occurs when, after watching housing prices rise for several years, house buyers come to believe that:


A) housing prices will eventually fall.
B) housing prices will continue to rise.
C) the housing market could be a risky investment.
D) the price increases cannot be explained, and uncertainly drives them out of the market.

Correct Answer:

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