When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:
A) a recession.
B) unemployment.
C) inflation.
D) an asset-price bubble.

Question

Quizplus · Accepted Answer

When people buy assets solely for the purpose of reselling them for a profit, without any regard for the actual value of the asset or its ability to generate income, it can lead to an asset-price bubble. This means that the prices of these assets become inflated beyond their true value, and when the bubble bursts, there can be significant economic consequences, including financial instability and a recession.

When People Buy Assets Simply Because They Believe the Assets