Figure 16-2 shows the short-run macroeconomic equilibrium of an economy. Based on the situation depicted in the graph below, which of the following would be an appropriate monetary policy response?Figure 16-2
A) A decrease in reserve requirements
B) A decrease in the discount rate
C) The purchase of government bonds
D) A decrease in the interest rate paid on reserves
E) An increase in the discount rate
Correct Answer:
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