When asset prices rise above their fundamental economic values,a(n)________ occurs.

Question

Quizplus · Accepted Answer

An asset-price bubble occurs when the prices of assets (such as stocks, real estate or commodities) rises above their fundamental economic values. This can happen due to speculation or market exuberance, but eventually leads to a correction where prices fall back down to their fundamental values. The other options do not describe the phenomenon of asset-price bubbles.

When Asset Prices Rise Above Their Fundamental Economic Values,a(n)________ Occurs