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Exhibit 16-4 Aggregate Demand and Supply Model

Question 102

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Exhibit 16-4 Aggregate demand and supply model
Exhibit 16-4 Aggregate demand and supply model In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD<sub>3</sub> to AD<sub>2</sub>? A) Lower the legal reserve requirement. B) Lower the discount rate. C) Lower the federal funds rate. D) Sell government securities.
In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD3 to AD2?


A) Lower the legal reserve requirement.
B) Lower the discount rate.
C) Lower the federal funds rate.
D) Sell government securities.

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