Which of the following is NOT a likely driver for an economic bubble?
A) sound logic
B) desire for wealth
C) irrational exuberance
D) fast-growing business sector
E) extensive availability of capital
Answer: A
Explanation: A) If people operated on pure logic, they could see risks of a potential bubble and their pullback would likely prevent it. Bubbles are often driven by human irrationality, or as former Fed Chairman Alan Greenspan called it, "irrational exuberance."
Business
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