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Use the figure below to answer the following question(s) .
Figure 14-1
-In Figure 14-1, an unanticipated shift to a more expansionary monetary policy will shift
Government Spending
The total amount of money that a government expends on public services, social welfare programs, infrastructure, and defense, among other areas.
Interest Rates
A charge, expressed in terms of a percentage of the principal, applied by a lender to a borrower for using its resources.
Crowding-Out Effect
A situation where increased government spending leads to a reduction in private sector spending, often due to higher borrowing costs.
Aggregate Demand
Aggregate demand represents the total demand for goods and services in an economy at a given time and price level.
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