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) increase taxes
C) decrease taxes
D) shift to a more restrictive monetary policy
E) shift to a more expansionary monetary policy

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) increase taxes 
C) decrease taxes 
D) shift to a more restrictive monetary policy 
E) shift to a more expansionary monetary policy

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) increase taxes 
C) decrease taxes 
D) shift to a more restrictive monetary policy 
E) shift to a more expansionary monetary policy

Figure 14-6 in the Situation Shown in Figure 14-6