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

Question 240

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>1</sub> to AD<sub>2</sub>? A) Lower the legal reserve requirement. B) Lower the federal funds rate. C) Print currency. D) Raise the discount rate. E) Sell government securities. In Exhibit 20-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?


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

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