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Author Question: Refer to Figure 17-1. Suppose that the economy is currently at pointA. If the Federal ... (Read 112 times)

rayancarla1

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Question 1

Figure 17-1










Refer to Figure 17-1.  What should the Federal Reserve do if it wants to move from point A to point B in the short-run Phillips curve depicted in the figure above?


◦ buy treasury bills
◦ sell treasury bills
◦ lower the discount rate
◦ increase the money supply
◦ lower taxes

Question 2

Figure 17-1










Refer to Figure 17-1.  Suppose that the economy is currently at point A. If the Federal Reserve engaged in contractionary monetary policy, where would the economy end up in the short run?


◦ It would remain at point A.
◦ point B
◦ point C
◦ point D
◦ point E


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Marked as best answer by rayancarla1 on Mar 16, 2019

mmpiza

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