If interest rates on bank loans increase, then what will happen to the planned aggregate expenditure function? What will happen to the equilibrium condition line? How will this impact the level of planned aggregate expenditures? And, how will this impact the level of real GDP?

If interest rates on bank loans increase, then what will happen to the planned aggregate expenditure function? What will happen to the equilibrium condition line? How will this impact the level of planned aggregate expenditures? And, how will this impact the level of real GDP?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter23: The Aggregate Expenditure Model

Section: Chapter Questions

Problem 10P

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