If the Fed Wants to Raise the Interest Rate, in the Short

question 10

Multiple Choice

If the Fed wants to raise the interest rate, in the short run in the money market the Fed

• A)increases the quantity of money.
• B)shifts the demand for money curve rightward.
• C)decreases the quantity of money.
• D)shifts the demand for money curve leftward.
• E)directly raises the interest rate and does nothing to either the supply of money or the demand for money.

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