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.

Question

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.

Quizplus · Accepted Answer

The Answer is C

Refer to the Following Figure When Answering the Following Questions