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Figure 14-6 in the Situation Shown in Figure 14-6

Question 59

Multiple Choice

Figure 14-6 Figure 14-6 In the situation shown in Figure 14-6, how could the Fed return the economy to potential output? A) decrease government spending B) decrease taxes C) sell U.S. government bonds to banks D) lower the discount rate E) lower the required reserve ratio In the situation shown in Figure 14-6, how could the Fed return the economy to potential output?


A) decrease government spending
B) decrease taxes
C) sell U.S. government bonds to banks
D) lower the discount rate
E) lower the required reserve ratio

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