Figure 17-11

-Refer to Figure 17-11.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,the Federal Reserve would most likely
A) increase interest rates.
B) decrease interest rates.
C) not change interest rates.
D) decrease the inflation rate.

Question

Figure 17-11
 
-Refer to Figure 17-11.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,the Federal Reserve would most likely
A) increase interest rates. 
B) decrease interest rates. 
C) not change interest rates. 
D) decrease the inflation rate.

Quizplus · Accepted Answer

The Answer of Figure 17-11
 
-Refer to Figure 17-11.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,the Federal Reserve would most likely
A) increase interest rates. 
B) decrease interest rates. 
C) not change interest rates. 
D) decrease the inflation rate.

Figure 17-11 -Refer to Figure 17-11.In the Dynamic Model of AD-AS in Model