Figure 14-6 -In the Situation Shown in Figure 14-6, How Could the How

question 8

Multiple Choice

Figure 14-6
-In the situation shown in Figure 14-6, how could the Fed return the economy to potential output?

• A)decrease government spending
• B)decrease taxes
• C)sell U.S.government bonds to banks
• D)lower the discount rate
• E)lower the required reserve ratio

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