Which of the following stock market decreases is best explained by the notion of a bubble collapsing?

Question

Quizplus · Accepted Answer

The Japanese stock market in late 1990 is best explained by the notion of a bubble collapsing. In the late 1980s, the Japanese stock market experienced a rapid increase in prices, with shares becoming overvalued beyond their intrinsic value. This led to the formation of a bubble, which eventually collapsed in late 1990, resulting in a severe crash that lasted for more than a decade.

Which of the Following Stock Market Decreases Is Best Explained