Asked by Angela Trevino on May 01, 2024
Verified
Which famous economist suggested that asset bubbles arise naturally as investors become more willing to take on added risk during stable periods, leading to increased asset prices?
A) Milton Friedman
B) Hyman Minsky
C) Al Gore
D) John Keynes
Hyman Minsky
An American economist known for his theories on financial instability and the inherent tendency of financial markets to move towards crisis.
Asset Bubbles
A situation where the price of an asset dramatically exceeds its intrinsic value, often due to speculative buying.
- Identify the long-term patterns and theories related to asset bubbles and investor behavior.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
B
Explanation :
Hyman Minsky is credited with proposing the theory that asset bubbles form naturally as investors become more willing to take on additional risk during periods of stability, which in turn elevates asset prices.
Learning Objectives
- Identify the long-term patterns and theories related to asset bubbles and investor behavior.
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