Use the Figure Below to Answer the Following Question(s)

question 149

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 14-2

-If the Fed anticipates that the conditions illustrated by AD₁ and SRAS in Figure 14-2 will be present in the near future,it should

• A)shift to a more restrictive policy.
• B)shift to a more expansionary policy.
• C)request that Congress raise tax rates.
• D)refuse to buy any more U.S.securities.

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