An Increase in Interest Rates by the Fed Based on a Given

question 14

Multiple Choice

An increase in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and higher interest rates resulting from an upward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.

• A)shift left of; movement up
• B)movement up; shift left of
• C)shift left of; shift right of
• D)movement up; shift right

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