Exhibit 16-5 Money, investment and product markets 
In Exhibit 16-5, if the interest rate falls from i1 to i2, investment spending will:
A) increase, and aggregate demand will shift from AD1 to AD2.
B) decrease, and aggregate demand will shift from AD2 to AD1.
C) remain the same, and aggregate demand will shift from AD2 to AD3.
D) increase, and aggregate demand will shift from AD2 to AD1.
E) decrease, and aggregate demand will shift from AD1 to AD2.
Correct Answer:
Verified
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