Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: AD-AS Model I
-(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate monetary policy is to:

A) increase taxes and decrease government spending.
B) decrease taxes and increase government spending.
C) increase the money supply and decrease interest rates.
D) decrease the money supply and increase interest rates.