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Question
Ceteris paribus, if the Fed was targeting the quantity of money supplied and money demand dropped the Fed would likely ______________. If the Fed was instead targeting interest rates and money demand dropped the Fed would likely _______________.
A. increase the money supply; do nothing
B. do nothing; decrease the money supply
C. decrease the money supply; do nothing
D. do nothing; increase the money supply
E. increase the money supply; decrease the money supply
Answer
This answer is hidden. It contains 1 characters.
Related questions
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