Figure 27-2 -Refer to Figure 27-2. in the Graph Above, If the Above

question 262

Multiple Choice

Figure 27-2
-Refer to Figure 27-2. In the graph above, if the economy is at point A, an appropriate fiscal policy by Congress and the president would be to

• A) lower the discount rate of interest.
• B) execute an open market sale of government securities.
• C) increase government transfer payments.
• D) increase marginal income tax rates.

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