Draw a Flowchart Showing the Impact of an Increase in Interest

question 53

Essay

Draw a flowchart showing the impact of an increase in interest rates on planned investment, planned aggregate expenditure and equilibrium output.

---

Definitions:

Confusion

A state of being bewildered or unclear in one’s mind about something, often resulting from lack of understanding or clarity.

Groupthink

A deterioration of mental efficiency, reality testing, and moral judgment in the interest of group solidarity; extreme form of consensus

Harmony

A state of agreement or concord, often used to describe peaceful and coherent relationships among individuals or elements within a whole.

Group Solidarity

The unity, cohesion, and sense of belonging among members of a group, often seen in shared goals or values.