What happens to the equilibrium in aggregate output if the interest rate falls? Use a graph of the aggregate expenditure line (like the top half of Exhibit 2.10 to answer the question. (Hint: Start with how the decline in the interest rate impacts investment and then describe how that change in
investment impacts the income expenditure model)

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of