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

question 136

Multiple Choice

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

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