When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

The ratio of the increase in equilibrium real GDP to the increase in autonomous expenditure is called the

A) MPC. B) consumption function. C) MPS. D) multiplier.

The IS curve shifts to the right when ________

A) autonomous consumption decreases B) taxes increase C) autonomous investment increases D) all of the above E) none of the above