Question: Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20

Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy's multiplier is 4. if household wealth falls by 5 percent because of declining house values. and the real interest rate falls by 3 percentage points. in what direction and by how much will the aggregate demand curve initially shift at each price level? The aggregate demand curve will shift! (Click to select) :1 by $ :j billion. it in what direction and by how much will it eventually shift? The aggregate demand curve will shift by $ |:| billion
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