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Exhibit 16-4 Aggregate Demand and Supply Model

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Exhibit 16-4 Aggregate demand and supply model
Exhibit 16-4 Aggregate demand and supply model   In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD<sub>1</sub> to AD<sub>2</sub>? A)  raise the legal reserve requirement B)  raise the discount rate C)  lower the federal funds rate D)  buy government securities
In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?

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