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Use the gure below to answer the following question(sl: 1 0 AS E 1 e ? s 5 . a: 4 ' .1. E
Use the gure below to answer the following question(sl: 1 0 AS E 1 e ? s 5 \" . a: 4 ' .1. E ' E An. 11-1201 a - I ' - g 25 E ' an: {11:90} _ l l : a -: E \"ew a 530' so" so" 120' 150 o" " a," ' " ' lnvastmm [5} Real GDP ($3 Refer to the above graphs, in which the numbers in parentheses near the AD1, ADz, and A03 labels indicate the level of investment spending associated with each curve, respectively. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point B on the investment demand curve. To achieve the longrun goal of a noninationarv full- employment output Q; in the economy, the Fed should: 0 Decrease the interest rate from 6 to 4 percent 0 Increase investment spending from $30 to $60 billion O Decrease the interest rate from 8 to 6 percent O Decrease the interest rate from 10 to 8 percent
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