In the Money Market, in the Short Run in Order

question 214

Multiple Choice

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

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

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Definitions:

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