Refer to the information provided in Figure 15.1 below to answer the questions that follow. Figure 15.1
-Refer to Figure 15.1. Which of the following could cause a movement from Point B to Point A?
A) a decrease in the interest rate
B) positive growth in aggregate output
C) negative growth in aggregate output
D) an increase in the interest rate

Question

Refer to the information provided in Figure 15.1 below to answer the questions that follow.  Figure 15.1
-Refer to Figure 15.1. Which of the following could cause a movement from Point B to Point A?
A) a decrease in the interest rate 
B) positive growth in aggregate output 
C) negative growth in aggregate output 
D) an increase in the interest rate

Quizplus · Accepted Answer

A decrease in interest rate would make borrowing cheaper and increase investment, leading to an increase in aggregate output and a movement from Point B to Point A. Positive or negative growth in aggregate output would only cause a movement along the same curve, not a shift to a different curve. An increase in interest rate would lead to a decrease in investment and a decrease in aggregate output, causing a shift from Point A to Point B.

Refer to the Information Provided in Figure 15