-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

Name: -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
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A hike in the federal funds rate typically leads to higher borrowing costs, reducing investment and consumer spending, which decreases output and increases the unemployment rate in the short run.

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