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AP® Macroeconomics

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Economic Policies to Expand PPC

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Using the graph above, which of the following will allow this economy to move from point B to E?

I. Increase government spending

II. Lower discount rate

III. Federal Reserve purchase of bonds on the open market

A

I only

B

II only

C

I and II only

D

II and III only

E

I, II, and III