Figure 14-6
-In the situation shown in Figure 14-6, how could the Fed return the economy to potential output?
A)decrease government spending
B)decrease taxes
C)sell U.S.government bonds to banks
D)lower the discount rate
E)lower the required reserve ratio

Question

Figure 14-6 
-In the situation shown in Figure 14-6, how could the Fed return the economy to potential output?
A)decrease government spending 
B)decrease taxes 
C)sell U.S.government bonds to banks 
D)lower the discount rate 
E)lower the required reserve ratio

Quizplus · Accepted Answer

The Answer of Figure 14-6 
-In the situation shown in Figure 14-6, how could the Fed return the economy to potential output?
A)decrease government spending 
B)decrease taxes 
C)sell U.S.government bonds to banks 
D)lower the discount rate 
E)lower the required reserve ratio

Figure 14-6 -In the Situation Shown in Figure 14-6, How Could the How