Figure 18-4 -Refer to Figure 18-4.In the Graph Above,suppose the Economy Is

question 171

Multiple Choice

Figure 18-4

-Refer to Figure 18-4.In the graph above,suppose the economy is initially at point A.The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Congress and the president?

• A)an increase in transfer payments
• B)an increase in interest rates
• C)an increase in the marginal income tax rate
• D)an open market purchase of Treasury bills

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