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Table 26-3 -Refer to Table 26-3. Consider the Hypothetical Information in the Hypothetical

Question 173

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Table 26-3
Table 26-3 -Refer to Table 26-3. Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy. If the Fed wants to keep real GDP at its potential level in 2015, it should A) buy Treasury securities. B) sell Treasury securities. C) decrease the required reserve ratio. D) decrease income taxes.
-Refer to Table 26-3. Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy. If the Fed wants to keep real GDP at its potential level in 2015, it should


A) buy Treasury securities.
B) sell Treasury securities.
C) decrease the required reserve ratio.
D) decrease income taxes.

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