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Author Question: For all points below the 45-degree line, planned aggregate expenditure will be less than GDP. ... (Read 44 times)

dejastew

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on: Jun 29, 2018
For all points below the 45-degree line, planned aggregate expenditure will be less than GDP.
 
  Indicate whether the statement is true or false

Question 2

Refer to Figure 26-14. In the figure 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 the Federal Reserve use to move the economy to point C?
 
  A) sell Treasury bills B) decrease income taxes
  C) buy Treasury bills D) increase the required-reserve ratio


pallen55

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


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