Table 15-2 -Refer to Table 15-2.Consider the Hypothetical Information in the Table

question 94

Multiple Choice

Table 15-2

-Refer to Table 15-2.Consider the hypothetical information in the table above for potential real GDP,real GDP,and the price level in 2018 and in 2019 if the Federal Reserve does not use monetary policy.If the Fed wants to keep real GDP at its potential level in 2019,it should

• A)buy Treasury securities.
• B)sell Treasury securities.
• C)increase the required reserve ratio.
• D)increase income taxes.

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Definitions:

Conjunctions

Words used to connect clauses or sentences, or to coordinate words in the same clause, such as "and," "but," "or," and "so."

Punctuated Correctly

Written or arranged with proper use of punctuation marks to clarify meaning.

Soy Sauce

A dark, salty liquid condiment, traditionally made by fermenting soybeans and wheat, used in various cuisines, particularly East Asian and Southeast Asian.

Conjunctions

Words that connect clauses, sentences, or words in a sentence, such as "and", "but", and "or".