If the Federal Reserve Raises Interest Rates in an Autonomous

Multiple Choice

If the Federal Reserve raises interest rates in an autonomous tightening ________.

A) the MP curve shifts up,there is an upward movement along the IS curve,and the AD curve shifts to the left to a lower level of equilibrium output
B) the MP curve shifts down,there is a downward movement along the IS curve and the AD curve shifts to the right to a higher level of equilibrium output
C) the MP curve shifts up,there is a downward movement along the IS curve and the AD curve shifts to the right to a lower level of equilibrium output
D) the MP curve shifts down,there is an upward movement along the IS curve and the AD curve shifts to the left to a higher level of equilibrium output
E) none of the above