In the IS-MP Model,when the Fed Increases the Real Interest

question 80

Multiple Choice

In the IS-MP model,when the Fed increases the real interest rate

• A) the MP curve shifts up resulting in a decline in the output gap.
• B) the MP curve shifts up resulting in an increase in the output gap.
• C) the MP curve shifts down resulting in a decline in the output gap.
• D) the MP curve shifts down resulting in an increase in the output gap.

---

Definitions:

Diagnosis

The identification of the nature of an illness or other problem by examination of the symptoms.

Key KSAs

Essential knowledge, skills, and abilities required for effectively performing tasks or roles within a particular job or field.

Mutual Accountability

The shared responsibility among members of a group or team to achieve collective goals and uphold standards of performance.

Team Approach

A method of working that emphasizes collaboration and collective effort among group members towards a common goal.