Question 44 (2.5 points) ) Listen Use the following table to answer the next question. The money supply and investment are in billions. Money Supply (billions Investment (billions of of dollars Interest Rate dollars $50 7% $100 60 110 120 80 130 90 140 Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to decrease aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 5%, then the Federal Reserve should _the money supply by_ Al decrease, $10 billion B) decrease, $20 billion O C) increase, $10 billion D) increase, $20 billion Question 45 (2.5 points) Listen Use the following diagram to answer the next question. Price Love Beal GO Assume the economy is initially on aggregate demand AD3. The Fed should O raise the prime rate. buy bonds. Increase the discount rate. O decrease the reserve requirement. Question 46 (2.5 points) Listen Use the following graph to answer the next question. Price Level ROM GOD In the diagram, Q, is the full-employment output. If the economy's current aggregate demand curve is AD,. It would be appropriate for the government to reduce government purchases and taxes by equal-size amounts. reduce government purchases or increase taxes. Increase government purchases or reduce taxes. reduce unemployment compensation benefits