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

question 175

Multiple Choice

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

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

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Definitions:

Occipitofrontal Muscle

A muscle located on the forehead, involved in raising the eyebrows and wrinkling the forehead skin.

Risorius Muscle

A facial muscle associated with expressions such as smiling and laughing, extending from the cheekbone to the corners of the mouth.

Mastication

The process of chewing food in preparation for swallowing and digestion.

Orbicularis Oculi

A circular muscle around the eye that enables blinking and closing of the eyelids, playing a role in facial expressions.