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10. Refer to the diagrams. The numbers in parentheses after the AD 1, AD 2, and AD 3 labels indicate the levels of investment spending
10. Refer to the diagrams. The numbers in parentheses after the AD 1, AD 2, and AD 3 labels indicate the levels of investment spending associated with each curve. All figures are in billions. If the money supply is Ms1 and the goal of the monetary authorities is full-employment output Of, they should: * MS, MS2 MS3 AS Investment demand Interest rate (%) Price level AD, (/ = $60) AD2 (1 = $50) IAD, (1 = $40) $80 100 120 $40 50 60 Q. Amount of money Investment Real GDP demanded and supplied maintain the money supply at $80. increase the money supply from $80 to $100. decrease the money supply from $80 to $60 increase the money supply from $80 to $120
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