1) Suppose that consumer spending initially rises by $3 billion for every 1 percent rise in household wealth and that investment spending initially rises by $15 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy's multiplier is 4. If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? A) Aggregate demand will initially shift (Rightward or Leftward) by $ Which one? B). In what direction and by how much will it eventually shift? Aggregate demand will eventually shift (Rightward of leftward by $ Which one? Fill in answer A) rightward by $20 billion at each price level. B) rightward by $5 billion at each price level. C) leftward by $20 billion at each price level. D) leftward by $15 billion at each price level. 2) If investment increases by $5 billion and the economy's MPC is 0.75, the aggregate demand curve will shift 3)The downsloping aggregate demand curve can be explained by Fill in answer A) the investment effect, the real-purchases effect, and the foreign purchases effect. B) the investment effect, the real-balances effect, and the international effect. C) the interest-rate effect, the real-purchases effect, and the foreign purchases effect. D) the interest-rate effect, the real-balances effect, and the foreign purchases effect.