When the Fed raises the federal funds rate, eventually there is
A) an upward movement along the investment demand curve and the aggregate demand curve shifts leftward.
B) an upward movement along the investment demand curve and the aggregate demand curve shifts rightward.
C) a leftward shift of the investment demand curve and the aggregate demand curve shifts leftward.
D) an upward movement along the investment demand curve and along the aggregate demand curve.
E) a leftward shift of both the aggregate demand curve and the aggregate supply curve.
Question 2
Ultimately, tariffs ________ the ability of foreign countries to buy the domestic country's exports and therefore ________ wealth.
A) increase; create
B) increase; destroy
C) reduce; create
D) reduce; destroy
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