In the aggregate supply-aggregate demand model, raising the federal funds rate initially
A. increases aggregate demand.
B. decreases aggregate demand.
C. increases long-run aggregate supply.
D. decreases long-run aggregate supply.
Answer:B
In the aggregate supply-aggregate demand model, raising the federal funds rate initially
A. increases aggregate demand. B. decreases aggregate demand. C. increases long-run aggregate supply. D. decreases long-run aggregate supply.