Exhibit 15-1 
-In the situation shown in Exhibit 15-1,how could the Fed return the economy to potential output?
A) decrease government spending
B) increase taxes
C) decrease taxes
D) decrease the money supply
E) increase the money supply
Correct Answer:
Verified
Q61: If interest rates are _ to changes
Q63: If the Fed sells government securities to
Q64: What would be the ultimate effect of
Q65: If interest rates are _ to changes
Q66: If interest rates are _ to changes
Q67: For monetary policy to be effective in
Q69: As a result of expansionary monetary policy,
A)both
Q71: A decrease in the money supply causes
Q73: If the Fed sells government securities to
Q79: If the Fed sells U.S.government securities to
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