A credit-driven bubble arises when ________ in lending causes ________ in asset prices which can cause ________ in lending.
A)a decrease;a decrease;an increase
B)a decrease;an increase;an increase
C)an increase;an increase;a further increase
D)a decrease;a decrease;a further decrease

Question

Quizplus · Accepted Answer

An increase in lending often leads to an increase in asset prices as more money is available to purchase assets, which can then lead to a further increase in lending as the value of assets used as collateral increases, encouraging more borrowing and lending.

A Credit-Driven Bubble Arises When ________ in Lending Causes ________

A Credit-Driven Bubble Arises When in Lending Causes