For each of the scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.

1. The United States government decides to increase the federal tax rate by 4% for all earners.
2. The newest release of the Consumer Confidence Index shows a steady increase in consumer confidence about the economy.
3. A manufacturing boom during the late 1990s has created an oversupply of tractors, a necessary implement in agricultural production.
4. The Federal Reserve, the agency charged with regulating banking and monetary policy in the United States, decides to increase the amount of money available in the economy.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan