-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.