-Refer to Figure 14-3

question 27

Multiple Choice

-Refer to Figure 14-3.Suppose the interest rate falls from 6% to 4.8%.The quantity of investment demanded falls by (I_b - I_a) as shown in Panel (a) .At a given price level, P₁, this causes the aggregate demand curve to shift from C to D as shown in Panel (b) .What is the size of this shift?

• A)The distance CD is equal to (I_b - I_a).
• B)The distance CD is equal to [MPC * (I_b -I_a)] where MPC = marginal propensity to consume.
• C)The distance CD is equal to [MPI * (I_b *I_a)] where MPI = marginal propensity to invest.
• D)The distance CD is equal to [Im *(I_b - I_a)] where Im = investment spending multiplier.

---

Definitions:

Supervisors

Individuals responsible for overseeing and guiding the work and performance of others, often in a professional or work setting.

Supervision

A process where a more experienced or knowledgeable individual guides or mentors another, often in a professional or educational setting.

Therapy

A treatment aimed at relieving or healing disorders, typically involving psychological techniques and discussions between the therapist and the client.

Effective Supervisors

Leaders or managers who are efficient in guiding and overseeing the work or performance of others, ensuring productivity and fostering a positive work environment.