If the Fed Had to Choose Between Fixing the Interest

Multiple Choice

If the Fed had to choose between fixing the interest rate and fixing the supply of money,it would

A) always fix the money supply,so that the price level would be stable
B) always fix the money supply,so that spending would be stable
C) always fix the interest rate,so that investment would be stable
D) always fix the interest rate,so that demand for money would be stable
E) find neither alternative would be clearly better than the other