In the short run, a rise in the federal funds rate shifts the
A. AD curve leftward.
B. SAS curve leftward.
C. LAS curve leftward.
D. None of the above because a decrease in the quantity of money does not shift a curve.
Answer:A
In the short run, a rise in the federal funds rate shifts the
A. AD curve leftward. B. SAS curve leftward. C. LAS curve leftward. D. None of the above because a decrease in the quantity of money does not shift a curve.