Everything else held constant,a credit-drive bubble is generally considered to have the potential to cause ________ damage to an economy compared to an irrational exuberance bubble.
A)less
B)about the same amount of
C)more
D)either more,less,or the same amount of

Question

Quizplus · Accepted Answer

A credit-driven bubble usually involves excessive borrowing and lending, which leads to high levels of debt and financial instability. When the bubble bursts, defaults and bankruptcies increase, which can cause significant damage to an economy. In contrast, an irrational exuberance bubble is characterized by investors' overoptimism and high expectations, which may eventually lead to a market correction but typically do not result in the same level of economic damage as a credit-driven bubble.

Everything Else Held Constant,a Credit-Drive Bubble Is Generally Considered to Have