Figure 28-1 -Refer to Figure 28-1. What Should the Federal Reserve Do

question 50

Multiple Choice

Figure 28-1
-Refer to Figure 28-1. What should the Federal Reserve do if it wants to move from point A to point B in the short-run Phillips curve depicted in the figure above?

• A) buy treasury bills
• B) sell treasury bills
• C) lower the discount rate
• D) increase the money supply
• E) lower taxes

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