A stock market bubble can arise
A) due to a technological advance.
B) due to lowering of lending standards.
C) due to self-fulfilling expectations.
D) all of the above.

Question

Quizplus · Accepted Answer

Stock market bubbles can arise due to a variety of factors including technological advances that spur speculative investment, lowering of lending standards that make it easier for more people to invest on margin, and self-fulfilling expectations where the belief that prices will continue to rise leads to increased buying and thus higher prices.

A Stock Market Bubble Can Arise