Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand fr

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3 years ago

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Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand fr

om AD1 to _____. rev: 06_20_2018 Multiple Choice AD2 and then to AD3 AD4 and then to AD3 AD3 and then to AD4 AD3 and then to AD2

Business

1 answer:

maw [93] · Answer 1 · 2022-01-12T03:23:36+03:00

Answer:

AD2 and then to AD3

Explanation:

If the investment is continued to increase by federal reserve it would only be feasible when money creation decreases the interest rate.

The aggregate demand would then be expanded and the aggregate demand curve shifted to the right. The necessary increase in aggregate demand must be such that aggregate shifts in demand curve from AD1 to AD2 to AD3.