(Interest Rate, Planned investment in billions): (3%,$400) (6%,$360), (9%, $320), (12%, $280), (15%, $240), (18%, $200): Suppose the expenditure multiplier is 10, and the initial interest rate is 15%. What would be the impact on the equilibrium output if the interest rate fell to 6%?
A) It would increase by $1,200 billion.
B) It would decrease by $1,200 billion.
C) It would decrease by $3,600 billion.
D) It would increase by $3,600 billion.
Answer: A) It would increase by $1,200 billion.
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