Question: 8. The interest rate effect can be viewed as a chain of reactions in the economy. a. Below is the chain of reactions with some

8. The interest rate effect can be viewed as a chain of reactions in the economy.

a. Below is the chain of reactions with some of the steps filled in. Fill in the missing steps in the chain and be sure to indicate the direction of change (using an up or down arrow).

b. What component (or piece) of aggregate demand is primarily affected by the wealth effect? l-58

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