Refer to the following figure when answering the following questions.
Figure 12.2: IS-MP Curve
-Consider Figure 12.2. If there is a sharp increase in consumer confidence, the economy moves from point ________. To prevent a ________, the Fed ________, and the economy moves from point ________.
A) a to d; recession; lowers interest rates; d to b
B) a to d; recession; lowers interest rates; d to c
C) c to b; bubble; raises interest rates; b to c
D) d to c; recession; lowers interest rates; c to b
E) b to a; bubble; raises interest rates; a to d

Question

Refer to the following figure when answering the following questions.
Figure 12.2: IS-MP Curve 
-Consider Figure 12.2. If there is a sharp increase in consumer confidence, the economy moves from point ________. To prevent a ________, the Fed ________, and the economy moves from point ________.
A) a to d; recession; lowers interest rates; d to b 
B) a to d; recession; lowers interest rates; d to c 
C) c to b; bubble; raises interest rates; b to c 
D) d to c; recession; lowers interest rates; c to b 
E) b to a; bubble; raises interest rates; a to d

Quizplus · Accepted Answer

The Answer of Refer to the following figure when answering the following questions.
Figure 12.2: IS-MP Curve 
-Consider Figure 12.2. If there is a sharp increase in consumer confidence, the economy moves from point ________. To prevent a ________, the Fed ________, and the economy moves from point ________.
A) a to d; recession; lowers interest rates; d to b 
B) a to d; recession; lowers interest rates; d to c 
C) c to b; bubble; raises interest rates; b to c 
D) d to c; recession; lowers interest rates; c to b 
E) b to a; bubble; raises interest rates; a to d

Refer to the Following Figure When Answering the Following Questions