In the Keynesian Model,suppose the Fed Sets a Target for the Real

question 56

Multiple Choice

In the Keynesian model,suppose the Fed sets a target for the real interest rate.If the IS curve shifts up and to the right,and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run,it will

• A)shift the LR curve up.
• B)not shift the LR curve.
• C)shift the LR curve down.
• D)shift the IS curve up and to the right.

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