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Exhibit 20-4  Aggregate Demand and Supply Model in Exhibit 20-4

Question 188

Multiple Choice

Exhibit 20-4  Aggregate demand and supply model Exhibit 20-4  Aggregate demand and supply model In Exhibit 20-4, 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. E) Print currency. In Exhibit 20-4, 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.
E) Print currency.

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