Refer to the Following Figure When Answering

question 55

Multiple Choice

Refer to the following figure when answering
Figure 12.2: IS-MP Curve
-Consider Figure 12.2. If the Fed lowers interest rates and there are no aggregate demand shocks, the economy moves from:

• A) point e to b
• B) point d to c
• C) point d to a
• D) point e to d
• E) Not enough information is given.

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