Which of the following statements is NOT true?
A. Speculative demand for an asset may contribute to the formation of a bubble.
B. Some asset prices purchased during the formation of a bubble may be rational.
C. Asset price bubbles are always harmful to the general economy.
D. Speculative demand is based on the assumption that the asset price will continue to rise.
Answer:C
Which of the following statements is NOT true?
A. Speculative demand for an asset may contribute to the formation of a bubble. B. Some asset prices purchased during the formation of a bubble may be rational. C. Asset price bubbles are always harmful to the general economy. D. Speculative demand is based on the assumption that the asset price will continue to rise.