Figure 12.1: MP Curve
-In Figure 12.1, if the Federal Reserve sets the real interest rate at $R ^ { * } { } _ { t }$ , which line represents the MP curve?
A) $\mathrm { MP } _ { 1 }$
B) $\mathrm { MP } _ { 2 }$
C) $\mathrm { MP } _ { 3 }$
D) $\mathrm { MP } _ { 4 }$
E) Not enough information is given.

Question

Figure 12.1: MP Curve 
-In Figure 12.1, if the Federal Reserve sets the real interest rate at $R ^ { * } { } _ { t }$ , which line represents the MP curve?
A) $\mathrm { MP } _ { 1 }$ 
B) $\mathrm { MP } _ { 2 }$ 
C) $\mathrm { MP } _ { 3 }$ 
D) $\mathrm { MP } _ { 4 }$ 
E) Not enough information is given.

Quizplus · Accepted Answer

The Answer of Figure 12.1: MP Curve 
-In Figure 12.1, if the Federal Reserve sets the real interest rate at $R ^ { * } { } _ { t }$ , which line represents the MP curve?
A) $\mathrm { MP } _ { 1 }$ 
B) $\mathrm { MP } _ { 2 }$ 
C) $\mathrm { MP } _ { 3 }$ 
D) $\mathrm { MP } _ { 4 }$ 
E) Not enough information is given.

Figure 121: MP Curve -In Figure 12 R∗tR ^ { * } { } _ { t }R∗t​

Figure 121: MP Curve
-In Figure 12 $R ^ { * } { } _ { t }$