Suppose That Households Decrease Their Demand for Checkable Deposits

question 67

Essay

Suppose that households decrease their demand for checkable deposits. If the Fed is using an interest rate as an intermediate target, will it have to take any action to maintain the target?

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Definitions:

Prey

Organisms that are hunted and eaten by other organisms (predators) as a means of surviving in the natural world.

Cats

Domesticated small carnivorous mammals known for their agility, keen senses, and various vocalizations.

Manifest Content

In psychoanalytic theory, the apparent and remembered content of a dream, as contrasted with its hidden or latent content.

Latent Content

Unconscious underlying meanings of dreams and creative processes, distinct from the overt storyline or manifest content.