Refer to Figure 12.4 for the Following Question

Multiple Choice

Refer to Figure 12.4 for the following question.
Figure 12.4

-Refer to Figure 12.4. In this figure, if the economy in Year 1 is at point A and expected in Year 2 to be at point B, then the appropriate monetary policy by the Reserve Bank of Australia would be to:

A) lower interest rates.
B) raise interest rates.
C) lower income taxes.
D) raise income taxes.