The Difference Between Irrational Bubbles and Rational Bubbles Is

Multiple Choice

The difference between irrational bubbles and rational bubbles is

A) irrational bubbles occur in reality; rational bubbles do not.
B) an irrational bubble does not burst; a rational bubble does.
C) no economists believe in irrational bubbles; all economists believe in rational bubbles.
D) an irrational bubble inevitably bursts; a rational bubble does not.
E) government policy cannot correct an irrational bubble problem; government policy can correct a rational bubble problem.