An Increase in Interest Rates by the Fed Based on a Given

Multiple Choice

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) shift left of; movement up
B) movement up; shift left of
C) shift left of; shift right of
D) movement up; shift right