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-Refer to Figure 13

Question 23

Multiple Choice

-Refer to Figure 13.4. If the central bank's target inflation rate is &61552;*, AD<sub>2</sub> is too weak. The central bank adjusts monetary policy by __________ interest rates and ____ the AD function to the ____. A) raising, shifting, right B) lowering, shifting, left C) fixing, leaving, unchanged D) lowering, shifting, right
-Refer to Figure 13.4. If the central bank's target inflation rate is &61552;*, AD2 is too weak. The central bank adjusts monetary policy by __________ interest rates and ____ the AD function to the ____.


A) raising, shifting, right
B) lowering, shifting, left
C) fixing, leaving, unchanged
D) lowering, shifting, right

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