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Figure 11-4

Question 32

Multiple Choice

Figure 11-4 Figure 11-4 -Refer to Figure 11-4. Which of the following actions by the Fed could have caused the movement from AD<sub>1</sub> to AD<sub>2</sub> in Panel (a) ? A) selling government bonds in the open market B) buying government bonds in the open market C) increasing the discount rate D) increasing the federal funds rate
-Refer to Figure 11-4. Which of the following actions by the Fed could have caused the movement from AD1 to AD2 in Panel (a) ?


A) selling government bonds in the open market
B) buying government bonds in the open market
C) increasing the discount rate
D) increasing the federal funds rate

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