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

Question 184

Multiple Choice

Figure 14-6 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 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

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