Question: Consider a decrease in business confidence that reduces economic investment.Due to this, the Fed responds with monetary policy aswe would expect from class materials.Which will

Consider a decrease in business confidence that reduces economic investment.Due to this, the Fed responds with monetary policy aswe would expect from class materials.Which will be true?

The IS curve will shift right.

The Fed will lower interest rates.

A positive output gap will exist.

The MP curve will shift upward.

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