Asset price bubble is an increase in the price of assets that goes far beyond what can be justified by improving the fundamentals.

Question

Quizplus · Accepted Answer

An asset price bubble occurs when the price of assets, such as stocks, real estate, or commodities, increases rapidly and to an unsustainable level, fueled by speculation and investor hype rather than improving fundamentals such as company earnings or economic growth. Eventually, the bubble bursts, leading to a sharp decline in asset prices and potentially causing widespread economic disruption.

Asset Price Bubble Is an Increase in the Price of Assets