Author Question: Refer to Figure 27-8. In the graph above, suppose the economy in Year 1 is at point A and is ... (Read 110 times)

oliviahorn72 · **on:** Jun 29, 2018

Refer to Figure 27-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?

A) increase income taxes B) decrease government purchases
C) increase government purchases D) sell Treasury bills

Question 2

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?

A) The demand for the yen will fall, and the supply of the yen will increase.
B) The demand for the yen will fall, and the supply of the yen will fall.
C) The demand for the yen will increase, and the supply of the yen will fall.
D) The demand for the yen will increase, and the supply of the yen will increase.