In the IS-MP Model, the MP Curve Is Upward Sloping

Multiple Choice

In the IS-MP model, the MP curve is upward sloping from left to right because it is assumed that

A) central banks have no control over interest rates.
B) central banks will raise interest rates when national income rises in order to dampen inflationary pressure.
C) central banks will increase the money supply when national income rises in order to dampen inflationary pressure.
D) monetary policy can have no effect on national income.