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

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.