Problem
Explain how each of the following actions will affect the level of planned investment spending and unplanned inventory investment. Assume the economy is initially in income-expenditure equilibrium.
a. The Federal Reserve raises the interest rate.
b. There is a rise in the expected growth rate of real GDP.
c. A sizable inflow of foreign funds into the country lowers the interest rate.
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.