Use the Following to Answer Questions

Use the following to answer questions
Exhibit: Investment Demand and Aggregate Demand
Figure 14-3
Panel (a)
Panel (b)

-(Exhibit: Investment Demand and Aggregate Demand)
Suppose the interest rate rises from 4.8% to 6% as shown in Panel (a)
And the quantity of investment demanded falls from I_a to I_b.As a result of this, in Panel (b)
,

A) the aggregate demand curve shifts from AD₁ to AD₂.
B) the aggregate demand curve shifts from AD₂ to AD₁.
C) the aggregate demand curve does not shift; there is a movement up along the prevailing aggregate demand curve.
D) the aggregate demand curve does not shift; there is a movement down along the prevailing aggregate demand curve.