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The exact cause of economic bubbles is a debated topic among economists. Some experts think that bubbles and inflation are related and are caused by the same factors. Others believe that the bubbles represent an increase or rise over the products or assets fundamental value. Whenever there is a rising movement, it must eventually return to that fundamental value, which is its natural state.
There is another school of thought which believes bubbles are a necessary effect of unreasonably valuing assets based solely on their returns in the recent past without really thinking from a macro perspective or regard for economic fundamentals.
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What else can I help you with?
What we're some causes of economic specialization?
Trade balance and decentralization are some of the causes of economic specialization.
What are the causes of economic diversity?
The main causes of economic diversity are * Poverty * Wealth * Disability * Age * Unemployment * Culture * Education
What are causes of economic problem in the Philippines?
causes of econimic downfall in the philippies
How scarcity causes economic problem?
how
What causes economic risk?
the jews
Are student loans becoming the next economic bubble?
Yes, I believe student loans are becoming the next economic bubble.
What causes soda to bubble when poured on ice?
The same thing that causes soda to bubble when it is poured on almost anything.
Describe a stock market bubble Explain what causes a bubble and why a crash generally follows a bubble?
A stock market bubble can be defined as an economic cycle in which there is a rapid expansion, which is followed by contraction. Basically, too many investors become too eager to buy. When they realize the value of the stock is going down, and sell off to save some of their money. The crash usually happens because when there is a bubble, the investment class gets to a point when prices don't justify the underlying value.
What causes the Coolant to bubble?
A bad head gasket or a cracked head(s).
What causes coolant to bubble?
A bad head gasket or a cracked head(s).
What causes transmission fluid to bubble?
IF you have over filled the transmission this will cause it to bubble, this could cause serious damage, drain and refill with the proper ammount.
What we're some causes of economic specialization?
Trade balance and decentralization are some of the causes of economic specialization.
How does gravity affect the shape of a soap bubble?
Gravity affects the shape of soap bubbles by dragging them towards the ground. When a bubble forms, gravity causes water to collect at the lowest, centermost point of the bubble which is what allows the globular shape of the bubble to form
What describes an economic bubble?
stock prices being higher than their real value :)
What are the possible causes and treatment options for a blood bubble on a dog's skin?
Possible causes of a blood bubble on a dog's skin include trauma, insect bites, or underlying health conditions. Treatment options may include draining the bubble, applying a warm compress, or seeking veterinary care for further evaluation and treatment.
What are the possible causes and treatment options for a blood bubble on a dog?
Possible causes of a blood bubble on a dog include trauma, infection, or a blood vessel abnormality. Treatment options may include draining the bubble, applying medication, or surgery depending on the underlying cause. It is important to consult a veterinarian for proper diagnosis and treatment.
What are the potential causes and solutions for a bubble in a wall?
A potential cause of a bubble in a wall is trapped air or moisture during the painting process. To fix this issue, the bubble can be punctured with a small hole, the area can be smoothed out, and the wall can be repainted.
