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11. Consider Figure 7.1. Suppose the stock market drops sharply, and there is a loss in consumer and investor condence. The economy will move from

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11. Consider Figure 7.1. Suppose the stock market drops sharply, and there is a loss in consumer and investor condence. The economy will move from . To prevent a _____ ; the Fed will _____ ; and the economy will move from point a A to point D; recession; lower interest rates; D to point B D to point C; recession; lower interest rates; C to point B ) ) (c) C to point B; expansion; raise interest rates; B to point C ) A to point D; recession; lower interest rates; D to point C ) (e Not enough information is given.

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