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Figure 16-2 Shows the Short-Run Macroeconomic Equilibrium of an Economy

Question 74

Multiple Choice

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 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


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

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