ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
Author: NEWNAN
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Transcribed Image Text:Question 3 of 22
ⒸMacmillan Learning
The interest rate effect
is the change in exports and imports resulting from changes in the interest rate caused by changes in the aggregate
price level.
is the change in interest rates caused by changes to government purchases.
O is the change in investment spending and government purchases caused by changes in money demand.
O is the change in consumer and investment spending due to changes in interest rates resulting from changes in the
aggregate price level.
O is the change in real GDP caused by the Federal Reserve adjusting target interest rates.
4
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