Ap macroeconomics Exam: Course Study Guide [ unit I ] What is economics?

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, r

I , I

AD

PL (P₁-P₂) rGDP (Y₁-Y_*) UE (Y₁-FE) E (Y₁-FE)
		(the decrease in r leads to an increase in the quantity of interest sensitive investment demanded)
B	discount rate MS r , r I , I AD			PL (P₁-P₂) rGDP (Y₁-Y_*) UE (Y₁-FE) E (Y₁-FE)
		(the decrease in r leads to an increase in the quantity of interest sensitive investment demanded)
C	RR MS r , r I , I AD			PL (P₁-P₂) rGDP (Y₁-Y_*) UE (Y₁-FE) E (Y₁-FE)
		(the decrease in r leads to an increase in the quantity of interest sensitive investment demanded)
MONETARY POLICY SOLUTION GRAPH C

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