Business, 14.04.2020 22:37, roseemariehunter12

For each of the following events, state
1) whether there is movement along the MP curve or a shift, and
2) the direction of the shift or movement along if there is one. Recall that a ``movement along'' the MP would occur if it's the IS curve that shifts.

a) The Fed decreases the target federal funds rate

Shift Up of the MP Curve

b) The real GDP Increases

Movement Along the MP Curve – to the Right

c) Government spending decreases

Movement Along the MP Curve – to the Left

d) Lending institutions begin to charge a higher default risk premium

Shift Down of the MP Curve

Answers: 2

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For each of the following events, state
1) whether there is movement along the MP curve or a...