Based on the diagram, if potential output equals 8,000 and the real interest rate is 2 percent, then there is gap and the Fed must the real interest rate so that output will equal potential output. PAE Y = PAE Expenditure Line (r = 2%) Expenditure Line (r = 4%) Expenditure Line (r = 6%) 4,000 8,000 10,000 Output YMultiple Choice O a recessionary; raise O an expansionary; reduce O no output; not change O an expansionary; raiseIf planned aggregate spending in an economy can be written as PAE = 10,000 + 0.75 Y - 10,000r, and potential output equals 36,200, what real interest rate must the Federal Reserve set to bring the economy to full employment? Multiple Choice O 8.5 percent O 7.5 percent O 9.5 percent O 10 percentSudhir has the following assets and liabilities shown in the accompanying table.: Credit card balance $ 2,000 moo Car 15,000 Which of the following actions would increase Sudhir's money demand by $200? MummeChmce O Sudhir writes a check for $200 to pay down his credit card balance. 0 Sudhir writes a check for $200 to pay down his car loan balance. 0 Sudhir pays $200 cash for a new lamp. (3 Sudhir gets a $200 cash advance on his credit card and puts the proceeds in his checking account. In a certain economy, the components of planned spending are given by C: 500 + 0.8(Y T) 300r /P= 200 400r 6:200 NX=1O T=150 Given the information about the economy above, how much would autonomous expenditures decrease for each onepercentagepoint increase in the real interest rate (I)? Multiple Choice O 35 units. O 700 units. O 5.6 units. O 7 units