-In the Above Figure, If the Economy Is Initially at Point

Multiple Choice

-In the above figure, if the economy is initially at point c, the short-run effect of a hike in the federal funds rate is given by movement from point

A) c to point d, increasing output and decreasing the unemployment rate.
B) c to point a, keeping output and the unemployment rate constant.
C) c to point b, increasing output and decreasing the unemployment rate.
D) c to point d, decreasing output and increasing the unemployment rate.