Figure 27-2
-Refer to Figure 27-2. In the graph above, if the economy is at point A, an appropriate fiscal policy by Congress and the president would be to
A) decrease the required reserve ratio.
B) sell government securities.
C) increase government expenditures.
D) decrease transfer payments.

Question

Figure 27-2 
-Refer to Figure 27-2. In the graph above, if the economy is at point A, an appropriate fiscal policy by Congress and the president would be to
A) decrease the required reserve ratio. 
B) sell government securities. 
C) increase government expenditures. 
D) decrease transfer payments.

Quizplus · Accepted Answer

Increasing government expenditures is an expansionary fiscal policy that can help stimulate economic activity and move the economy from point A towards full employment.

Figure 27-2 -Refer to Figure 27-2. in the Graph Above, If the Above