If the Federal Reserve Raises Interest Rates in an Autonomous

question 83

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

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Definitions:

Fifteenth Century

The period in the Gregorian calendar that spans from the years 1401 to 1500, marked by significant events, developments, and figures in history.

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A group of people ordained for religious duties, especially in Christian traditions.