According to the IS-MP-PC Model, a 1% Increase in the Policy

question 8

Multiple Choice

According to the IS-MP-PC model, a 1% increase in the policy interest rate leads to

• A)an upward shifts of the AD curve.
• B)no change in the AD curve.
• C)a downward shift in the AD curve.
• D)a downward shift in the AS curve.

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