Refer to Figure 15-6. In the figure above, if the economy is at ...

[maychende]

Refer to Figure 15-6. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to
 
  A) raise income taxes. B) raise interest rates.
  C) lower income taxes. D) lower interest rates.

Question 2

An appropriate fiscal policy response when aggregate demand is growing at a faster rate than aggregate supply is to decrease the money supply.
 
  Indicate whether the statement is true or false

[beccamahon]

Answer to Question 1

D

Answer to Question 2

FALSE

[maychende]

Excellent

[cici]

TYSM