If the Combination R = 5% and Y = $100

question 83

Multiple Choice

If the combination r = 5% and Y = $100 billion is on the Fed rule line, we know that the combination r = 7% and Y = $100 billion would represent

• A) the Fed rule shifting to the right.
• B) the Fed rule shifting to the left.
• C) a movement up the Fed rule.
• D) a movement down the Fed rule.

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