Multiple Choice
Refer to the information provided in Figure 11.4 below to answer the questions that follow. Figure 11.4
-Refer to Figure 11.4. During the 1990s, many firms in the United States were investing in new capital. If the economy was originally at Point A, this would have caused a movement to Point
A) E.
B) B.
C) C.
D) D.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: When the interest rate is high, planned
Q3: _ shifts the Fed rule to the
Q4: Refer to the information provided in Figure
Q5: Refer to the information provided in Figure
Q6: If the combination r = 5% and
Q8: An increase in the price level shifts
Q9: If government spending increases, then the IS
Q10: The aggregate demand curve shows that at
Q11: To decrease the price level the government
Q12: If the combination r = 6% and