Figure 26-13 -Refer to Figure 26-13. in the Figure Above, If the Above

Multiple Choice

Figure 26-13
-Refer to Figure 26-13. In the figure above, 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 Federal Reserve would be to

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