Author Question: Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement ... (Read 338 times)

mckennatimberlake · **on:** Jun 29, 2018

Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?

A) a decrease in interest rates B) an increase in the money supply
C) a decrease in income taxes D) a decrease in government purchases

Question 2

Under the Bretton Woods exchange rate system, the U.S. government agreed to buy or sell gold at a fixed price of ________ per ounce.

A) 1 B) 35 C) 100 D) 400