An asset-price bubble entails ________. A) increasing the ...

[theo]

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.

[nmyers]

Answer to Question 1

B

Answer to Question 2

B

[theo]

Thanks for the timely response, appreciate it

[kswal303]

Gracias!