In the mid-2000s,U.S.housing prices experienced a bubble.What does a bubble in housing prices refer to?
A) High asset prices that do not reflect the true long-run value of the asset
B) Low asset prices that do not reflect the true long-run value of the asset
C) Rising asset prices trending toward the true long-run value of the asset
D) Falling asset prices trending toward the true long-run value of the asset

Question

Quizplus · Accepted Answer

A bubble in housing prices refers to high asset prices that do not reflect the true long-run value of the asset. In this case, housing prices were driven up by speculation and easy access to credit, rather than due to the actual value of the properties. This led to a situation where prices were unsustainable and eventually resulted in a crash.

In the Mid-2000s,U