Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD3?
A. A decrease in consumer wealth
B. An increase in expected returns on investment
C. A decrease in real interest rates
D. An increase in productivity
Answer: A
Economics
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Everything else held constant, if aggregate output is to the ________ of the LM curve, then there is an excess demand of money which will cause the interest rate to ________
A) right; fall B) right; rise C) left; fall D) left; rise
Economics
Properly enforced property rights will usually cause
A. lower levels of investment spending. B. lower levels of real interest rates. C. higher levels of investment spending. D. higher levels of real interest rates.
Economics