If the Fed lowers the federal funds rate, the first effect in an AS/AD figure is a ________ shift of the ________ curve.

Name: If the Fed lowers the federal funds rate, the first effect in an AS/AD figure is a ________ shift of the ________ curve.
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Question

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Lowering the federal funds rate reduces the cost of borrowing, which typically increases spending and investment. This leads to a rightward shift of the Aggregate Demand (AD) curve as overall demand in the economy increases.

If the Fed Lowers the Federal Funds Rate, the First