An increase in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and higher interest rates resulting from an upward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.
A. movement up; shift left of
B. shift left of; shift right of
C. movement up; shift right
D. shift left of; movement up
Answer: A
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Explain why it is highly unlikely that the world's oil reserves will be depleted within the next 40 years
What will be an ideal response?
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a. decreases the demand for that good b. decreases the quantity demanded for that good c. increases the supply of that good. d. increases the quantity supplied of that good. e. does none of the above
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