Figure 34-9 -Refer to Figure 34-9.Suppose the Economy Is Currently at Point

Multiple Choice

Figure 34-9
-Refer to Figure 34-9.Suppose the economy is currently at point A.To restore full employment,the appropriate fiscal response

A) requires the central bank to purchase government bonds,which will increase the money supply.
B) is a reduction in government purchases.
C) is a reduction in taxes.
D) requires the central bank to sell government bonds,which will reduce the money supply.