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Figure 26-6 -Refer to Figure 26-6.In the Figure Above Suppose the Economy

Question 19

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Figure 26-6
Figure 26-6 -Refer to Figure 26-6.In the figure above suppose the economy is initially at point A.The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve? A) a decrease in income taxes B) an increase in the required reserve ratio C) an open market purchase of Treasury bills D) an open market sale of Treasury bills
-Refer to Figure 26-6.In the figure above suppose the economy is initially at point A.The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?


A) a decrease in income taxes
B) an increase in the required reserve ratio
C) an open market purchase of Treasury bills
D) an open market sale of Treasury bills

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