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Refer to the Information Provided in Figure 12

Question 84

Multiple Choice

Refer to the information provided in Figure 12.2 below to answer the questions that follow. Refer to the information provided in Figure 12.2 below to answer the questions that follow. Figure 12.2 -Refer to Figure 12.2. In response to a decrease in net taxes, the Fed would increase the interest rate by the greatest amount when the aggregate demand curve shifts from A) AD<sub>1</sub> to AD<sub>2</sub>. B) AD<sub>3</sub> to AD<sub>4</sub>. C) AD<sub>5</sub> to AD<sub>6</sub>. D) AD<sub>6</sub> to AD<sub>1</sub>. Figure 12.2
-Refer to Figure 12.2. In response to a decrease in net taxes, the Fed would increase the interest rate by the greatest amount when the aggregate demand curve shifts from


A) AD1 to AD2.
B) AD3 to AD4.
C) AD5 to AD6.
D) AD6 to AD1.

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