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Asset Price Inflation Can Be a Problem Because It

Question 3

Multiple Choice

Asset price inflation can be a problem because it:


A) gives people the illusion that their real wealth has decreased more than it really has.
B) makes people switch their resources from risky investments to conservative investments.
C) gives people the illusion that their real wealth has increased more than it really has.
D) typically increases at the same rate as goods price inflation.

Correct Answer:

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