Raising the federal funds rate shifts the aggregate demand curve ________ so that real GDP ________ and the price level ________.
A) rightward;increases;rises
B) leftward;decreases;rises
C) rightward;increases;falls
D) leftward;decreases;falls
E) leftward;increases;rises
Correct Answer:
Verified
Q153: If the Fed raises the federal funds
Q154: Q155: If the Fed increases the quantity of Q156: When there is a threat of inflation Q157: In a recession,the Fed's monetary policy aims Q159: When the Fed worries about inflation,it _ Q160: The Federal Reserve fears that the United Q161: President Reagan often stated he preferred supply Q162: When the economy is in a recession,_ Q163: Do automatic fiscal stabilizers eliminate business cycles?
A)Yes
B)No,because
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