Use the Following to Answer Questions

question 57

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 an inflationary gap at point h, it can move to point i as a result of:

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

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Industrial Design Act

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