1. An inline filter has an estimated life of 14 years. By adding a purifier to the filer, savings of $500 in annual operating costs can be obtained. Annual interest on capital is 7% (interest rate per year). Compute the approximate maximum expenditure justifiable for the purifier

He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.