Consider the two graphs above. Suppose there is an increase in ...

[tiffannnnyyyyyy]

Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ________ the desired level of the capital stock, as depicted in graph ________.
 
  A) increase; B
  B) increase; A
  C) decrease; B
  D) decrease; A

Question 2

The standard IS curve is adjusted in new Keynesian theory to account for ________.
 
  A) the forward-looking behavior of households and firms
  B) the difference between real and nominal variables
  C) changes in GDP, or Gross Domestic Product
  D) the impact of a rising national debt

[jessofishing]

Answer to Question 1

C

Answer to Question 2

A

[tiffannnnyyyyyy]

TYSM

[rleezy04]

Thanks for the timely response, appreciate it