Assuming a Decrease in Money Demand,then to Keep Interest Rates

question 6

Multiple Choice

Assuming a decrease in money demand,then to keep interest rates constant the Fed must

• A)keep the money supply constant.
• B)conduct an open market sale of bonds.
• C)accommodate the decreased demand for money by the public by increasing the money supply.
• D)All of the above
• E)None of the above

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