Refer to the above graph. A budget deficit would be associated with GDP level:

The Fed would be pursuing a contractionary monetary policy if it was

A) selling bonds in the open market. B) lowering the differential between the discount rate and the federal funds rate. C) selling dollars in foreign exchange markets. D) lowering the reserve requirement.

The Federal Reserve could target both the money supply and the interest rate at the same time if it controlled money demand along with money supply

Indicate whether the statement is true or false