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Without notice investment spending dramatically rises in

Without notice, investment spending dramatically rises in the United States.

a) Using a correctly drawn AD/AS graph, explain the short-run impact of this sudden increase in investment spending on each of the following for the United States.

Output
Price Level

b) Explain how the resultant change represented by the AD/AS graph will affect the credit market (borrowers, savers, and lenders). Are they helped or hurt? hint: Recall that "how" means "how and why."

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