Figure 15.3

-Refer to Figure 15.3 If this economy is initially in a recession, the change in price level which would bring the economy back to full employment would also change the money demand and interest rates. The change in interest rates will change investment spending, which is reflected by the movement from

Question

Figure 15.3

-Refer to Figure 15.3 If this economy is initially in a recession, the change in price level which would bring the economy back to full employment would also change the money demand and interest rates. The change in interest rates will change investment spending, which is reflected by the movement from

Quizplus · Accepted Answer

The movement from e to f indicates a change in investment spending due to changes in interest rates as the economy moves back to full employment.

Figure 15.3 -Refer to Figure 15.3 If This Economy Is Initially in Economy