Referring to the graph above, a movement from point H to point I might represent ________.
A) the increase in the inflation rate that occurs when the real interest rate rises
B) the automatic response of monetary policy to an increase in the inflation rate
C) an autonomous tightening of monetary policy
D) any of the above
E) none of the above
Question 2
The most volatile component of total investment spending is ________.
A) construction spending by firms
B) spending by firms on equipment
C) residential construction by households
D) inventory investment
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