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How did over confidence play in role in the boom and the crash?

User Rcanpahali
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Answer: Confidence plays a very large role in both economic "booms" and "crashes," since when confidence is high, people are willing to invest more in companies since they are confident the companies will continue to do well. When confidence is low, however, they are hesitant to invest since they think the company may fail.

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User Amirfl
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