Figure 27-10 -Refer to Figure 27-10. in the Graph Above, Suppose the Above

question 189

Multiple Choice

Figure 27-10
-Refer to Figure 27-10. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?

• A) increase income taxes
• B) increase government spending
• C) buy Treasury bills
• D) decrease the discount rate

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