9] Explain how each of the following actions will affect the level of plamed investment spending and unplanned inventory investment. Assume the economy is initially
9] Explain how each of the following actions will affect the level of plamed investment spending and unplanned inventory investment. Assume the economy is initially in income-expenditure equilibrium. a. What will happen to planned investment spending if the Federal Reserve raises the interest rate? Rise 0 Fall 0 No Change 0 b. What will happen to unplanned investment spending if the Federal Reserve raises the interest rate? Rise O Fall 0 No Change 0 c. What will happen to planned investment spending if there is a rise in the expected growth rate of real GDP? Rise 0 Fall 0 No Change 0 d. What will happen to unplanned investment spending if there is a rise in the expected growth rate of real GDP? Rise 0 Fall 0 No Change 0 c. What will happen to planned investment spending if a sizable inow of foreign funds into the country lowers the interest rate? Rise O Fall 0 No Change 0 c. What will happen to unplanned investment spending if a sizable inow of foreign funds into the country lowers the interest rate? Rise 0 Fall 0 No Change 0 ll
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