Figure 15-2 -Refer to the Figure 15-2.If the Closed Economy Is at Economy

question 217

Multiple Choice

Figure 15-2
-Refer to the Figure 15-2.If the closed economy is at point b,the best policy to restore full employment is which of the following?

• A) increasing the money supply
• B) decreasing government purchases
• C) increasing taxes
• D) selling Canadian dollars

---

Definitions:

Bond

A debt security under which the issuer owes the holder a debt and is obliged to pay interest and/or to repay the principal at a later date.

Risk Level

The degree of uncertainty and/or potential financial loss inherent in an investment decision or policy.

Operating Leases

A lease agreement allowing a company to use an asset without ownership, typically with shorter terms, where the lessor bears the risk of obsolescence.

Noncancelable

A contract or agreement that does not allow for cancellation before its set expiration or end date.