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Exhibit 16-3 -In the Situation Shown in Exhibit 16-3, How Could the How

Question 99

Multiple Choice

Exhibit 16-3 Exhibit 16-3 -In the situation shown in Exhibit 16-3, 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 Exhibit 16-3, 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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