If planned aggregate spending in an economy can be written as PAE = 15,000 + 0.6Y - 20,000r, and potential output equals 35,000, what real interest rate must the Federal Reserve set to bring the economy to full employment?
A) 0.02
B) 0.03
C) 0.04
D) 0.05

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The Answer of If planned aggregate spending in an economy can be written as PAE = 15,000 + 0.6Y - 20,000r, and potential output equals 35,000, what real interest rate must the Federal Reserve set to bring the economy to full employment?
A) 0.02
B) 0.03
C) 0.04
D) 0.05

If Planned Aggregate Spending in an Economy Can Be Written