It can be said that _ is(are) the cause of an asset bubble.
A)changes in the real economy
B)expectations
C)inflation
D)tight monetary policy

Question

Quizplus · Accepted Answer

Expectations play a major role in causing an asset bubble. Investors tend to invest in a particular asset class, such as stocks or real estate, if they believe that the value of that asset will increase in the future. This creates a self-reinforcing cycle, where demand for the asset increases, and with it, the price of the asset. As the price of the asset increases, more investors are attracted to it, leading to further increases in price. Eventually, this leads to an asset bubble, where the price of the asset is far removed from its underlying value.

It Can Be Said That _ Is(are) the Cause of an Asset