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If the Central Bank Is Targeting the Money Supply,the Money

Question 4

Multiple Choice

If the central bank is targeting the money supply,the money supply is __________ and __________ the nominal interest rate.


A) equal to money velocity;is vertical with respect to
B) whatever level is dictated by the president;is horizontal with respect to
C) whatever level is dictated by the central bank;is horizontal with respect to
D) whatever level is dictated by the central bank;is vertical with respect to
E) whatever level is dictated by the central bank;slopes downward with respect to

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