Multiple Choice
"Monetary policy can be described either in terms of the money supply or in terms of the interest rate." This statement amounts to the assertion that
A) shifts of the money-supply curve cannot occur if the Federal Reserve decides to target an interest rate.
B) the aggregate-demand curve will not shift in response to Federal Reserve actions if the Fed decides to target an interest rate.
C) changes in monetary policy aimed at contracting aggregate demand can be described either as decreasing the money supply or as raising the interest rate.
D) the activities of the Federal Reserve's bond traders are irrelevant if the Federal Reserve decides to target an interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q46: According to liquidity preference theory,the opportunity cost
Q47: If the stock market crashes,then<br>A)aggregate demand increases,which
Q48: Figure 34-3. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 34-3.
Q49: In the short run,an increase in the
Q50: If the stock market booms,then<br>A)aggregate demand increases,which
Q52: In response to the sharp decline in
Q53: According to liquidity preference theory,an increase in
Q54: People will want to hold more money
Q55: When the interest rate is below the
Q56: If the stock market crashes,then<br>A)aggregate demand decreases,which