Figure 16-7 -Refer to Figure 16-7. at Point 4, If Policymakers Are

question 117

Multiple Choice

Figure 16-7
-Refer to Figure 16-7. At point 4, if policymakers are concerned about economic performance, they will most likely respond by

• A) increasing government purchases and the money supply.
• B) increasing taxes.
• C) decreasing aggregate demand.
• D) having the Fed sell bonds.

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