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

Question

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

Quizplus · Accepted Answer

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

Refer to the Following Figure When Answering