Question

Since about November of 2018, we have seen a change in the Fed's policy strategy. In...

Since about November of 2018, we have seen a change in the Fed's policy strategy. In accordance with the material in chapter 21, which of the following would be a correct statement?

A. The MP curve has shifted down to the right

B. There has been a rightward movement along the MP curve

C. There has been a leftward movement along the MP curve

D. The MP curve has shifted up to the left

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Answer #1

Answer : option D ) The MP curve has shifted up to the left

Explanation : The MP curve is mainly used to show the changes as well as the actions of federal reserve. The MP curve mainly shifts towards the left or up to the left when a decrease occurred with in the fund rate of federal.

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