Use the Figure Below to Answer the Following Question

question 59

Multiple Choice

Use the figure below to answer the following question.

Figure 30.3.2
-Refer to Figure 30.3.2. The figure shows the economy of Freezone. Potential GDP is $250 billion. To return the economy to full employment, the central bank can ________ the overnight rate and ________ securities.

• A)lower; sell
• B)raise; sell
• C)raise; buy
• D)lower; buy
• E)lower; not change its holdings of

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