If There Is Instability in the Demand for Commodities

question 141

Multiple Choice

If there is instability in the demand for commodities,

• A)a monetary policy of fixed interest rates will perform better than a policy of holding the real money supply fixed.
• B)a countercyclical money-supply policy will cause large swings in interest rates.
• C)a fixed money supply policy will perform better than countercyclical changes in money supply.
• D)a fixed money supply policy will stabilize interest rates.