Solved

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

Question 116

Multiple Choice

In the Keynesian model,suppose the Fed sets a target for the real interest rate.If the IS curve shifts down and to the left,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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions