Fiscal Policy Cheat Sheet (updated) 1/31/2017
Big change here - simply the fact that when the Interest Rate increases, investment decreases.
This happens in the short-run and the long-run.
I haven't really pinned down the differing ways the College Board asks this question.
Since firms can't buy equipment/factories (capital goods) in the short run the the question tends to be non specific. Asking about Growth.
Some questions specifically want to know about long run growth.
