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  1. #1
    Junior Member pinkisluv17's Avatar
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    Other things equal, a decrease in the real interest rate will?

    -expand investment and shift the AD curve to the left.
    -expand investment and shift the AD curve to the right.
    -reduce investment and shift the AD curve to the left.

    -reduce investment and shift the AD curve to the right.

  2. #2
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    OTHER THINGS EQUAL, A DECREASE IN THE REAL INTEREST RATE WILL:
    B) EXPAND INVESTMENT AND SHIFT THE AD CURVE TO THE RIGHT.


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