Refer to the following figure when answering the following questions.
Figure 11.6: IS Curve 
-Consider the IS curve in Figure 11.6. If there is a positive aggregate demand shock and interest rates remain constant, the economy will move from point e to point:
Definitions:
Compounded Annually
Interest that is calculated and added to the principal once every year.
Compounded Quarterly
A compound interest calculation where the frequency of compounding is every three months, affecting the overall growth of an investment or debt.
Periodic Interest Rate
The rate of interest earned in one compounding period.
Payment Interval
The length of time between successive payments in an annuity.
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