Multiple Choice
The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model. The Fed can return the economy to potential output in the long run by:
A) purchasing U.S. government securities.
B) decreasing taxes.
C) selling U.S. government securities.
D) lowering the discount rate.
E) lowering the required reserve ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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