The Fed has increased the FFR by 3.75% this year.

a) Why has the Fed been increasing FFR and how does it relate to one of the Fed's objectives (dual mandate)?

b) Explain why interest rates on consumer loans and business loans have increased in response to the higher FFR

c) Explain the likely impact on consumption and investment, and the reasoning (logic), as a result of higher interest rates

d) How would economic growth and inflation be affected as a result of higher interest rates? Support your answer with a well-labeled AS-AD diagram