When the Federal Reserve lowers the federal funds rate, in the short run
A. the long-run aggregate supply curve shifts leftward.
B. the aggregate demand curve shifts rightward.
C. the economy moves along a given aggregate demand curve.
D. banks decrease the quantity of loans they make.
Answer:B
When the Federal Reserve lowers the federal funds rate, in the short run
A. the long-run aggregate supply curve shifts leftward. B. the aggregate demand curve shifts rightward. C. the economy moves along a given aggregate demand curve. D. banks decrease the quantity of loans they make.