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Author Question: An asset-price bubble entails ________. A) increasing the value of one's assets to cover ... (Read 101 times)

theo

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on: Jun 30, 2018
An asset-price bubble entails ________.
 
  A) increasing the value of one's assets to cover liability losses
  B) an increase in asset prices above their fundamental economic value
  C) reducing the number of participants in the underlying financial derivatives market
  D) an economic skins game

Question 2

The two primary explanations for the excess volatility of consumption are
 
  A) consumers' limited life spans and credit market imperfections.
  B) credit market imperfections and changes in market prices.
  C) changes in market prices and distorting taxes.
  D) distorting taxes and consumers' limited life spans.


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nmyers

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


theo

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

LVPMS

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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