Problem
1. How do changes in planned expenditures affect the aggregate demand curve?
2. How does an autonomous tightening or easing of monetary policy by the Fed affect the aggregate demand curve?
3. In Keynes's liquidity preference theory, what variables determine the demand for real money balances? How does the demand for real money balances respond to changes in each of these variables?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.