Some economists argue that the animal spirits of investors are so important in determining the level of
Question:
a. How would Figure 11.4 be different?
b. What would happen to the level of planned aggregate expenditure if the interest rate changed?
Transcribed Image Text:
P and Z do not shift the r=0 line Binding Situation IS Y* Aggregate output (income), Y Internet rate, r
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a If investment depended in no way on interest rates planned investment in Fig...View the full answer
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Related Book For
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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