Use the figure below to answer the following question(s).
Figure 14-2

-If the Fed anticipates that the conditions illustrated by AD₁ and SRAS in Figure 14-2 will be present in the near future,it should
A)shift to a more restrictive policy.
B)shift to a more expansionary policy.
C)request that Congress raise tax rates.
D)refuse to buy any more U.S.securities.

Question

Use the figure below to answer the following question(s).
Figure 14-2
 
-If the Fed anticipates that the conditions illustrated by AD₁ and SRAS in Figure 14-2 will be present in the near future,it should
A)shift to a more restrictive policy. 
B)shift to a more expansionary policy. 
C)request that Congress raise tax rates. 
D)refuse to buy any more U.S.securities.

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following question(s).
Figure 14-2
 
-If the Fed anticipates that the conditions illustrated by AD₁ and SRAS in Figure 14-2 will be present in the near future,it should
A)shift to a more restrictive policy. 
B)shift to a more expansionary policy. 
C)request that Congress raise tax rates. 
D)refuse to buy any more U.S.securities.

Use the Figure Below to Answer the Following Question(s)