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Author Question: Table 15-2 Refer to Table 15-2.Consider the hypothetical information in the table above for ... (Read 41 times)

Melani1276

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Question 1

Figure 15-15










Refer to Figure 15-15. 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
◦ decrease the required-reserve ratio
◦ buy Treasury bills
◦ sell Treasury bills

Question 2

Table 15-2









Refer to Table 15-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy. If the Fed wants to keep real GDP at its potential level in 2017, it should


◦ buy Treasury securities.
◦ sell Treasury securities.
◦ increase the required reserve ratio.
◦ increase income taxes.


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Marked as best answer by Melani1276 on Mar 16, 2019

joneynes

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