Business, 30.09.2019 20:00 902coo

Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. also assume that the economy’s multiplier is 3.
a. if household wealth falls by 4 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level?

Answers

Answer from: vanswol42

It will rise $80 billion if the household wealth falls by 4 percent.

Answer from: Quest

answer; competency based pay;

Answer from: Quest

answer; proclamation of 1763;

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Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household w...