Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, a decline in investment spending caused by the interest-rate effect of a price-level increase is depicted by the:
A. shift of the AD curve in panel (A).
B. shift of the AS curve in panel (B).
C. move from point a to point b in panel (B).
D. move from point a to point c in panel (C).
C. move from point a to point b in panel (B).
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Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:
a. socially responsible funds. b. index funds. c. equity funds. d. fixed-income funds. e. money market funds.
Owners of municipal bonds
a. are not required to pay federal income tax on the interest income. b. usually receive a higher interest rate compared to bonds issued by corporations. c. usually receive a higher interest rate compared to stock issued by corporations. d. pay taxes on the dividends earned from these bonds.