Asset price "bubbles" are sustained price increases driven by economic fundamentals.

Question

Quizplus · Accepted Answer

Asset price "bubbles" are actually sustained price increases that are not driven by economic fundamentals. They occur when investors buy assets based on the anticipation of price increases, rather than the assets' intrinsic value or economic fundamentals. This can lead to prices that are much higher than what the asset should actually be valued at, eventually causing a sudden, sharp correction in prices as the bubble bursts.

Asset Price "Bubbles" Are Sustained Price Increases Driven by Economic