The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

Multiple Choice

The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose real GDP is $100 million and the budget deficit is $14 million,as shown by point A.Which of the following events could result in a move from point A to point B?

A) the implementation of an expansionary fiscal policy
B) the implementation of a contractionary fiscal policy
C) the implementation of an expansionary monetary policy
D) the implementation of a contractionary monetary policy
E) the economy entering into a boom