A speculative bubble in an asset market:
A) is usually short term in nature as it usually bursts.
B) has a psychological basis; that is, it involves some irrationality on the part of investors.
C) is a situation in which the price of the asset goes up in a way which is not justified by the fundamentals that normally determine the price of the asset.
D) all of the above.
Correct Answer:
Verified
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