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21 December, 00:33

How would keynes's concept of animal spirits explain the creation of a housing bubble?

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  1. 21 December, 00:54
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    People regarded a house as a good investment which paved the way to an increased demand for housing as well as increasing the prices. This gave confirmation to people that housing was a good investment which led to the increase in demand and resulted to an upward spiral driven by positivity.
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