Use the Following to Answer Questions

question 172

Multiple Choice

Use the following to answer questions :
Figure: Monetary Policy and the AD-SRAS Model
-(Figure: Monetary Policy and the AD-SRAS Model) Look at the figure Monetary Policy and the AD-SRAS Model. If the economy is in a recessionary gap at point f, it could move to point g as a result of:

• A)a decrease in the money supply.
• B)a rise in the discount rate.
• C)an increase in the money supply.
• D)sales of government securities in the open market.