The MP curve is drawn on a graph with the ________ on the horizontal axis and the ________ on the vertical axis.
A) inflation rate; aggregate output
B) nominal interest rate; inflation rate
C) real interest rate; aggregate output
D) inflation rate; real interest rate

Question

Quizplus · Accepted Answer

The MP (Monetary Policy) curve is drawn with the inflation rate on the horizontal axis and the real interest rate on the vertical axis, reflecting how central banks typically set real interest rates in response to changes in inflation.

The MP Curve Is Drawn on a Graph with the ________