Which of the following policy alternatives would be an appropriate response to a sharp increase in investment spending, assuming policymakers want to stabilize output?

The law of demand implies that, other things remaining the same,

A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. B) as the demand for cheeseburgers increases, the price of a cheeseburger falls. C) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. D) as more people demand cheeseburgers, the quantity demanded increases. E) as income increases, the quantity of cheeseburgers demanded increases.

Referring to Figure 19.2, the effect of an increase in U.S. prices is represented by a movement from point

A) a to d. B) d to a. C) c to b. D) b to a.