A potential asset-price bubble can be seen by examining a in the ratio.
A)gradual increase; price-to-earnings
B)gradual increase; GDP-to-stock market
C)sharp increase; price-to-earnings
D)fall; inflation-unemployment

Question

Quizplus · Accepted Answer

A sharp increase in the price-to-earnings ratio (P/E ratio) is indicative of a potential asset-price bubble. The P/E ratio measures the price of a stock relative to its earnings per share, and a sharp increase suggests that investors are willing to pay a higher price for a company's earnings, which could be driven by speculation rather than actual fundamentals.

A Potential Asset-Price Bubble Can Be Seen by Examining a in the Ratio