Unformatted text preview: Guestlon 2 1 I 1 Pts Use the following graph to answer this question. Price Level . LRAS SRAS
P0 P1 Y... Yo ' Real GDP Suppose that Y“ has a value of $3 trillion and Y0 has a value of $3.5 trillion. Further suppose that the required reserve ratio is 10%. If the Federal Reserve wants to restore full
employment, it should . ® sell $500 billion of bonds to the banking system
0 increase the discount rate by 5%
0 reduce the federal funds rate ble% 0 increase the reserve ratio to 15% ...
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- Winter '11