Figure 26-15 
-Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
Definitions:
Yield To Maturity
The total return anticipated on a bond if the bond is held until its maturity date, taking into account its current market price, face value, interest rate, and time to maturity.
Semi-Annually
Occurring or conducted twice a year.
Face Value
The nominal or dollar value printed on a bond, stock, or other financial instrument, representing the amount due at maturity.
Coupon Rate
The interest rate on a bond paid by the issuer, which is a fixed percentage of the bond's face value, yielding regular interest payments to the bondholder.
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