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-In the Above Figure, Suppose the Economy Is in Short-Run

Question 263

Multiple Choice

  -In the above figure, suppose the economy is in short-run equilibrium at point D. Which of the following is the best policy option for the Fed? A)  Increase the required reserve ratio B)  Increase government spending C)  Increase taxes D)  Open market purchase of government securities
-In the above figure, suppose the economy is in short-run equilibrium at point D. Which of the following is the best policy option for the Fed?


A) Increase the required reserve ratio
B) Increase government spending
C) Increase taxes
D) Open market purchase of government securities

Correct Answer:

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