Question 34Suppose the U.S. dollar appreciates. Which of the following figures shows the correct effect on the IScurve?ORealinterestrateRealinterestrateO RealinterestrateRealinterestrateRealinterestrateQuestion 35Old IScurveMP curveNew IScurveOutput gapMP curveNew IS Old IScurvecurveOutput gapNew MP curveOld MP curveIS curveOutput gapOld MP curveNew MP curveIS curveOutput gap

The IS curve represents the relationship between the rate of interest and the output GDP in an…

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Suppose the U.S. dollar appreciates. Which of the following figures shows the correct effect on the IS curve?

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