When investors become irrationally optimistic that an asset's price will continue to rise, it causes a financial bubble to:

The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.07. The excess reserve ratio, e, is 0.10. What is the size of the money multiplier?

A) 4.70 B) 4.07 C) 4.75 D) 4.00

The demand for dollars will increase when

A) real interest rates in the United States fall. B) U.S. labor productivity increases relative to the world. C) the world is perceived as more stable than it used to be. D) U.S. residents develop a taste for more imported products.