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Question 39

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Use the following to answer questions .
Exhibit: Monetary Policy 2 Use the following to answer questions . Exhibit: Monetary Policy 2   -(Exhibit: Monetary Policy 2)  By shifting the supply curve from S<sub>1</sub> to S<sub>2</sub>, the Fed is attempting to A)  expand the economy by increasing interest rates. B)  contract the economy by increasing interest rates. C)  contract the economy by decreasing interest rates. D)  expand the economy by decreasing interest rates.
-(Exhibit: Monetary Policy 2) By shifting the supply curve from S1 to S2, the Fed is attempting to


A) expand the economy by increasing interest rates.
B) contract the economy by increasing interest rates.
C) contract the economy by decreasing interest rates.
D) expand the economy by decreasing interest rates.

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