Answer to Question #219066 in Macroeconomics for bee

Question

Use the figure below to answer questions 3.25 to 3.27.

3.25 The downwards movement from A to A’ can result from …

[1] an increase in interest rate.

[2] a decrease in interest rate.

[3] an increase in taxes.

[4] a decrease in taxes.

3.26 Given the answer for 3.25, which type of policy was applied in the above diagram?

[1] expansionary monetary policy

[2] expansionary fiscal policy

[3] contractionary monetary policy

[4] contractionary fiscal policy

Answer 1

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