Author Question: If the Fed lowers the federal funds rate, eventually the A) AS curve shifts rightward, decreasing ... (Read 72 times)

saraeharris · **on:** Jun 29, 2018

If the Fed lowers the federal funds rate, eventually the

A) AS curve shifts rightward, decreasing real GDP and raising the price level.
B) AS curve shifts leftward, decreasing real GDP and raising the price level.
C) AD curve shifts leftward, decreasing real GDP and raising the price level.
D) AD curve shifts leftward, decreasing real GDP and lowering the price level.
E) AD curve shifts rightward, increasing real GDP and raising the price level.

Question 2

________ are inducements to act in certain ways.

Fill in the blank(s) with correct word