Refer to Figure 12.5 for the Following Question

Multiple Choice

Refer to Figure 12.5 for the following question.
Figure 12.5

-Refer to Figure 12.5. In this figure, suppose the economy in Year 1 is at point A and expected in Year 2 to be at point B. Which of the following policies could the Reserve Bank of Australia use to move the economy to point C?

A) decrease income taxes
B) increase government spending
C) buy financial securities
D) sell financial securities