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Tidy Tidy
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8 years ago
Why doesn't the Fed have both a money supply target and an interest rate target?
A) Short-term interest rates do not respond to changes in the money supply, which the Fed can control.
B) The Fed does not control money demand.
C) The Fed cannot offset the impact of changes in cash management by the public or changes in lending policies of commercial banks on the money supply.
D) Only the level of interest rates matters when we consider rates of growth in real GDP, employment, and rates of price inflation.
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
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Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face
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SydnieSydnie
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8 years ago
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Tidy Author
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8 years ago
Thanks for your help!!
Liarec
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Yesterday
You make an excellent tutor!
TheMoffattMan
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2 hours ago
Smart ... Thanks!
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