If the Fed Wishes to Maintain Its Interest Rate Target

question 68

Multiple Choice

If the Fed wishes to maintain its interest rate target in the face of decreased money demand it would likely

• A) increase the money supply.
• B) decrease the money supply.
• C) more stringently enforce already existing banking regulations.
• D) propose new banking regulations.
• E) become more lax when it enforces already existing banking regulations.

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