Multiple Choice
Exhibit 15-6 
-If the Federal Reserve is targeting the money supply when the demand for money decreases,their proper response is to
A) decrease the money supply
B) keep the money supply on a path of constant,predictable growth
C) increase the money supply to match the increase in the demand for money
D) stimulate inflation to increase the demand for money
E) stimulate a decrease in the price level to increase the demand for money
Correct Answer:
Verified
Correct Answer:
Verified
Q23: The velocity of money increases for all
Q25: The velocity of M1 money has moved
Q26: In the short run,a decrease in the
Q28: If the Fed decreases the money supply,GDP<br>A)increases
Q29: For interest rates to remain stable during
Q30: If the money supply increases,the interest rate
Q31: An increase in the money supply causes
Q32: In recent years,much of the emphasis of
Q76: In the long run,increases in the money
Q148: For interest rates to remain stable during