U. S. durable goods orders slump most in three years The Commerce Department reported that orders for U. S. durable goods fell in January by the most in three years. Orders for commercial aircraft and business equipment fell most. Machinery orders dropped 10.4 percent. Source: Bloomberg, February 29, 2012 What determines the decrease in aggregate demand resulting from a decrease in durable goods orders?

Match each event to its effect on the equilibrium interest rate and the amount of investment in the loanable funds market. higher interest rate, greater investment higher interest rate, less investment lower interest rate, less investment lower interest rate, greater investment immediate consumer gratification is no longer preferred by people. an efficient new source of energy effectively increases the return on owning a factory. a wave of retirees stops working and begins drawing on retirement savings.