Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
7th Edition
ISBN: 9780134833415
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 15, Problem 15.6.4PA
To determine

The reason for changes in mortgage finance.

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The reduction in interest rates by the Reserve Bank also stimulated the demand for housing, and some people argue there is now a house price bubble. Using a graph, explain how asset price bubbles occur and why they are inconsistent with the ‘efficient markets hypothesis.’
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