-In the above figure, suppose the economy is at a short-run equilibrium at point B and the interest rate is r2. Which of the following policy options for the Fed will help solve the short-run situation?
A) Lowering the differential between the discount rate and the federal funds rate
B) Open market purchase of government securities
C) Lowering the required reserve ratio
D) Open market sale of government securities
Correct Answer:
Verified
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