Multiple Choice
Refer to the following figure when answering the following questions.
Figure 12.2: IS-MP Curve
-Consider Figure 12.2. If the Fed raises interest rates and there are no aggregate demand shocks, the economy moves from:
A) point b to d
B) point b to a
C) point b to c
D) point c to d
E) Not enough information is given.
Correct Answer:

Verified
Correct Answer:
Verified
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