The MP curve indicates the relationship between and the A

The MP curve indicates the relationship between ___ and the ____. A. taxes; price level B. the real interest rate; inflation rate C. monetary policy ; IS curve D. all of the above E. none of the above

Solution

Ans : the real interest rate and inflation rate.

Explanation :

Here MP curve represents monetary policy curve. MP curve represents a strong relationship between the real interest rate and inflation rate.