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Use the Following to Answer Questions

Question 112

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Use the following to answer questions .
Exhibit: Aggregate Demand and Investment 2 Use the following to answer questions . Exhibit: Aggregate Demand and Investment 2   -(Exhibit: Aggregate Demand and Investment 2)  The economy is in short-run equilibrium. If policymakers want to use monetary policy to improve economic performance, they should A)  buy bonds to reduce investment and aggregate demand. B)  sell bonds to reduce investment and aggregate demand. C)  buy bonds to reduce investment and short run aggregate supply. D)  sell bonds to reduce investment and short run aggregate supply.
-(Exhibit: Aggregate Demand and Investment 2) The economy is in short-run equilibrium. If policymakers want to use monetary policy to improve economic performance, they should


A) buy bonds to reduce investment and aggregate demand.
B) sell bonds to reduce investment and aggregate demand.
C) buy bonds to reduce investment and short run aggregate supply.
D) sell bonds to reduce investment and short run aggregate supply.

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