Reducing Investment Spending. In early 2015 after the decline in oil prices, major U.S. oil companies announced that they planned to cut back their investment spending for at least several years....

Reducing Investment Spending. In early 2015 after the decline in oil prices, major U.S. oil companies announced that they planned to cut back their investment spending for at least several years. Explain their reasoning. Draw a picture to illustrate the effects on aggregate demand. (Related to Application 3 on page 225.)