-Refer to the Above Graphs,in Which the Numbers in Parentheses

Multiple Choice

-Refer to the above graphs,in which the numbers in parentheses after the AD₁,AD₂,and AD₃ labels indicate the level of investment spending associated with each curve,respectively.All numbers are in billions of dollars.The interest rate and the level of investment spending in the economy are at point B on the investment demand curve.To achieve the goal of a non-inflationary full-employment output Q_f in the economy,the monetary authorities should:

A) decrease the interest rate from 10 to 8 percent.
B) decrease the interest rate from 8 to 6 percent.
C) decrease the interest rate from 6 to 4 percent.
D) increase investment spending from $30 to $60 billion.