Based on the Situation Depicted in the Graph Below, Which

question 36

Multiple Choice

Based on the situation depicted in the graph below, which of the following would be an appropriate monetary policy response?

• A)decrease reserve requirements
• B)decrease the discount rate
• C)sell government bonds
• D)none of the above

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Definitions:

De Facto Program

A program or policy that exists in practice and has effects, though it may not have been legally formalized or officially acknowledged.

Nursing Home Residents

Individuals, typically elderly or disabled, who live in a facility providing skilled nursing care and day-to-day living assistance.

Individual Mandate

A requirement, typically within healthcare policy, that individuals must purchase or otherwise obtain a certain good or service, such as health insurance.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate trade among the states and with foreign nations.