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Stock Market Bubbles Have Real Effects in the Economy Because

Question 225

Multiple Choice

Stock market bubbles have real effects in the economy because:


A) overvalued stocks cause inflationary effects in the economy.
B) overvalued stocks violate the efficient markets hypothesis.
C) overvalued stocks divert capital to less-productive uses.
D) when these bubbles burst, they raise the value of capital in those industries.

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