Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The money supply and interest rates can be successfully targeted simultaneously.
B) The money supply and interest rates cannot be successfully targeted simultaneously.
C) Increases in the demand for money will cause interest rates to fall if the money supply is held constant.
D) Increases in the demand for money will require the Fed to decrease the money supply to maintain an interest rate target.