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Author Question: Refer to Figure 15-14.In the figure above, suppose the economy in Year 1 is at ... (Read 117 times)

CQXA

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Question 1

Figure 15-13










Refer to Figure 15-13. In the figure above, if the economy in Year 1 is at point A and is expected in Year 2 to be at point B, then the appropriate monetary policy by the Federal Reserve would be to


◦ lower interest rates.
◦ raise interest rates.
◦ lower income taxes.
◦ raise income taxes.

Question 2

Figure 15-14










Refer to Figure 15-14. 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?


◦ decrease income taxes
◦ increase the required-reserve ratio
◦ buy Treasury bills
◦ sell Treasury bills


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Marked as best answer by CQXA on Mar 16, 2019

bulacsom

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CQXA

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Reply 2 on: Mar 16, 2019
Excellent


deja

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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