In the Money Market, in the Short Run in Order

question 43

Multiple Choice

In the money market, in the short run in order to decrease the nominal interest rate, the Reserve Bank must

• A) decrease the demand for money.
• B) directly lower the interest rate and not change either the demand for money or the supply of money.
• C) increase the discount rate.
• D) increase the quantity of money.
• E) decrease the quantity of money.

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