Figure 27-3 -Refer to Figure 27-3. in the Graph Above, Suppose the Above

question 39

Multiple Choice

Figure 27-3
-Refer to Figure 27-3. 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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