In an AS/AD figure, lowering the federal funds rate initially shifts the
A. AD curve leftward.
B. AD curve rightward.
C. long-run AS curve leftward.
D. long-run AS curve rightward.
Answer:B
In an AS/AD figure, lowering the federal funds rate initially shifts the
A. AD curve leftward. B. AD curve rightward. C. long-run AS curve leftward. D. long-run AS curve rightward.