Figure 18-3 -Refer to Figure 18-3.In the Graph Above,suppose the Economy Is

question 146

Multiple Choice

Figure 18-3

-Refer to Figure 18-3.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)a decrease in income taxes
• B)a decrease in interest rates
• C)a decrease in government purchases
• D)an increase in the money supply

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