Changes in Monetary Aggregates Such as M2 and M2+ Can

question 37

Multiple Choice

Changes in monetary aggregates such as M2 and M2+ can be a poor guide to the stance of monetary policy if

• A)commercial bank reserves are rising.
• B)interest rates are changing rapidly.
• C)interest rates are constant.
• D)money demand is changing in unpredictable ways.
• E)money demand is constant.