Multiple Choice
The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model. Which of the following policies will allow the Fed to close the GDP gap in the long run?
A) A decrease in government spending
B) A decrease in taxes
C) A sale of U.S. government bonds
D) An increase the discount rate
E) An increase in the required reserve ratio
Correct Answer:
Verified
Correct Answer:
Verified
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