Changes in fiscal policy
A) shift the LM curve.
B) shift the Phillips curve.
C) shift the MPRF curve out and back.
D) move the economy along the MPRF curve.

Question

Quizplus · Accepted Answer

Fiscal policy changes, such as government spending and taxation, can shift the MPRF (Monetary Policy Reaction Function) curve outward or inward, reflecting changes in the economic environment that monetary policy must respond to.

Changes in Fiscal Policy