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Consider Figure 1 2 . 2 . If housing prices drop sharply, there is a loss in consumer and investor confidence and the economy moves

Consider Figure 12.2. If housing prices drop sharply, there is a loss in consumer and investor confidence and the economy moves from point ________. To prevent a ________, the Fed ________, and the economy moves from point ________.
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d to c; recession; lowers interest rates; c to b
a to d; recession; lowers interest rates; d to b
a to d; recession; lowers interest rates; d to c
Not enough information is given.
c to b; bubble; raises interest rates; b to c

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