Refer to the graphs, in which the numbers in parentheses nea…

Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at equilibrium at the intersection of the aggregate supply curve and aggregate demand curve AD3. What policy should the Fed pursue to achieve a noninflationary, full-employment level of real GDP?

    Assets Liabilities and Net WorthStock Shares $400    Res…

    Assets Liabilities and Net WorthStock Shares $400    Reserves 40    Property 300    Securities 160    Loans 80    Demand Deposits 180    The figures in the table are for a single commercial bank. All figures are in thousands of dollars. This bank has liabilities and net worth totaling