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    Principles of Economics
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    Exam 32: The Fed Model: Linking Interest Rates, Output, and Inflation
  5. Question
    In the IS-MP Analysis in the Fed Model, Contractionary Fiscal
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In the IS-MP Analysis in the Fed Model, Contractionary Fiscal

Question 87

Question 87

Multiple Choice

In the IS-MP analysis in the Fed model, contractionary fiscal policy will shift the:


A) IS curve to the left.
B) IS curve to the right.
C) MP curve up.
D) MP curve down.

Correct Answer:

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