Unexpected financial bubbles $($rapid asset price increases$)$ or bursts $($abrupt asset price decreases$)$ may

Multiple Choice

spill over to the general economy.

affect consumer and business confidence.

lead to even more bubbles and busts.

All of the answers are correct.

A decline in the real interest rate will

Multiple Choice

increase the amount of investment spending.

shift the investment schedule downward.

shift the investment$$demand curve to the right.

shift the investment$$demand curve to the left.

A decline in the real interest rate will

Multiple Choice

increase the amount of investment spending.

shift the investment schedule downward.

shift the investment$$demand curve to the right.

shift the investment$$demand curve to the left.

A decline in the real interest rate will

Multiple Choice

increase the amount of investment spending.

shift the investment schedule downward.

shift the investment$$demand curve to the right.

shift the investment$$demand curve to the left.

Multiple Choice

changes in the prices of the most commonly used goods, including food and energy.

underlying changes in the CPI, after accounting for the price volatility of high$-$tech goods.

underlying increases in the CPI after removing volatile food and energy prices.

changes in key input prices.