A Decrease in Interest Rates by the Fed Based on a Given

Multiple Choice

A decrease in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and lower interest rates resulting from a downward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.

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