When the Federal Reserve increases the real interest rate, is the result a movement up or down

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When the Federal Reserve increases the real interest rate, is the result a movement up or down the IS curve? Does the value of the output gap increase or decrease?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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Question Posted: Jan 03, 2019 12:07 PM

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When the Federal Reserve increases the real interest rate, is the result a movement up or down

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Money, Banking, and the Financial System

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