Question 1
When the interest rate is high, planned investment is ________ so output is ________.
◦ high; high
◦ high; low
◦ low; high
◦ low; low
Question 2
The slope of the
IS curve is ________ and the slope of the Fed rule is ________.
◦ positive; positive
◦ positive; negative
◦ negative; positive
◦ negative; negative