The creation and deflation of economic bubbles impacts the sale of homes, cars and other expensive goods because

Question

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When economic bubbles are created, stock prices increase rapidly and people feel wealthy and confident. This can lead them to spend more, including on expensive items like homes and cars. However, when the bubble eventually deflates, people may feel less secure financially and be less likely to make big purchases.

The Creation and Deflation of Economic Bubbles Impacts the Sale