If the Fed Pursues a Strategy of Targeting an Interest

Multiple Choice

If the Fed pursues a strategy of targeting an interest rate when fluctuations in money demand are prevalent

A) fluctuations of nonborrowed reserves will be small.
B) fluctuations of nonborrowed reserves will be large.
C) the Fed will probably quickly abandon this policy,as it did in the 1960s.
D) the Fed will probably quickly abandon this policy,as it did in the 1950s.