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Refer to the Information Provided in Figure 27

Question 89

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Refer to the information provided in Figure 27.2 below to answer the question(s) that follow. Refer to the information provided in Figure 27.2 below to answer the question(s)  that follow.   Figure 27.2 -Refer to Figure 27.2. In response to a decrease in net taxes, the Fed would increase the interest rate by the least amount when the aggregate demand curve shifts from A)  AD<sub>1</sub> to AD<sub>2</sub>. B)  AD<sub>3</sub> to AD<sub>4</sub>. C)  AD<sub>5</sub> to AD<sub>6</sub>. D)  AD<sub>1</sub> to AD<sub>6</sub>. Figure 27.2
-Refer to Figure 27.2. In response to a decrease in net taxes, the Fed would increase the interest rate by the least amount when the aggregate demand curve shifts from


A) AD1 to AD2.
B) AD3 to AD4.
C) AD5 to AD6.
D) AD1 to AD6.

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