Refer to the Information Provided in Figure 12

Multiple Choice

Refer to the information provided in Figure 12.2 below to answer the questions that follow. Figure 12.2
-Refer to Figure 12.2. In response to an increase in government spending, the Fed would increase the interest rate by the greatest amount when the aggregate demand curve shifts from

A) AD₁ to AD₂.
B) AD₃ to AD₄.
C) AD₅ to AD₆.
D) AD₆ to AD₁.