-In the Above Figure, If the Economy Is Initially at Point

question 162

Multiple Choice

-In the above figure, if the economy is initially at point c, the short- run effect of a hike in the federal funds rate is given by movement from point

• A) c to point b, increasing output and decreasing the unemployment rate.
• B) c to point d, increasing output and decreasing the unemployment rate.
• C) c to point a, keeping output and the unemployment rate constant.
• D) c to point d, decreasing output and increasing the unemployment rate.

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Definitions:

Vocabulary

The set of words known and used by a person or group within a particular language.

Months

Units of time, typically used to measure periods within a year, based on the Earth's orbit around the Sun.

Spatial Abilities

The ability to comprehend, think logically about, and recall the spatial relationships between objects or areas.

Vocabulary

The set of words known and used by a person in speaking and writing.