Figure 27-1 -Refer to Figure 27-1.In the Graph Above,if the Economy Is

question 27

Multiple Choice

Figure 27-1

-Refer to Figure 27-1.In the graph above,if the economy is at point A,an appropriate fiscal policy by the Congress and the president would be to

• A) lower the discount rate of interest.
• B) execute an open market sale of government securities.
• C) increase government transfer payments.
• D) increase marginal income tax rates.

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