Question: Please take a look at the picture A shift from MP, to MP, will occur if Real interest rate, r O A. investors decrease the

Please take a look at the picture

A shift from MP, to MP, will occur if Real interest rate, r O A. investors decrease the term premium they require on long - term bonds. O B. the expected inflation rate decreases. B 12 MP, O C. investors decrease the short - term interest they expect in the future. A MP, O D. the default - risk premium decreases. C MP, Output gap, Y (percent deviation from potential GDP)

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