(Solved): Investment is one component of total spending. The following graph shows the defrand ror invesurien ...

Investment is one component of total spending. The following graph shows the defrand ror invesurient: Use the information from the previous graph to show the short run effect of the Fed's contractionary monetary policy by shifting the demand curve ar moving the point along the curve on the following graph. Hint: Be sure the new interest rate corresponds to the interest rate you found in the previous graph.