Question
Question
Which factor best shows why the demand for dot-com stocks created an unstable economic situation?
(1 point)
Responses
Low inflation led investors to buy more shares than necessary.
Low inflation led investors to buy more shares than necessary.
The demand for subprime mortgages increased at the same time.
The demand for subprime mortgages increased at the same time.
Investors drove prices higher than the worth of the stock.
Investors drove prices higher than the worth of the stock.
Large companies like Google controlled too much market share.
Which factor best shows why the demand for dot-com stocks created an unstable economic situation?
(1 point)
Responses
Low inflation led investors to buy more shares than necessary.
Low inflation led investors to buy more shares than necessary.
The demand for subprime mortgages increased at the same time.
The demand for subprime mortgages increased at the same time.
Investors drove prices higher than the worth of the stock.
Investors drove prices higher than the worth of the stock.
Large companies like Google controlled too much market share.
Answers
GPT-4o mini
The factor that best shows why the demand for dot-com stocks created an unstable economic situation is:
**Investors drove prices higher than the worth of the stock.**
This option highlights the speculative nature of the dot-com bubble, where investor enthusiasm led to inflated stock prices that were not supported by the underlying financial performance or value of the companies, contributing to economic instability when the bubble eventually burst.
**Investors drove prices higher than the worth of the stock.**
This option highlights the speculative nature of the dot-com bubble, where investor enthusiasm led to inflated stock prices that were not supported by the underlying financial performance or value of the companies, contributing to economic instability when the bubble eventually burst.