Multiple Choice
Which of the following statements is true?
A) Credit-driven asset bubbles are particularly dangerous. When asset prices fall, the deleveraging of credit markets reduces economic activity.
B) Bubbles driven soley by irrational exuberance lead to a failure of financial institutions.
C) Both A and B are correct.
D) Neither A nor B is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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