Exhibit 16-6 -If the Fed Is Targeting Interest Rates and Money Demand

question 59

Multiple Choice

Exhibit 16-6
-If the Fed is targeting interest rates and money demand shifts from D_m to D_m' in Exhibit 16-6, the Fed will

• A)do nothing and the interest rate will rise to i'
• B)do nothing and the interest rate will settle at i
• C)decrease the money supply to restore its target of i
• D)increase the money supply to restore its target of i
• E)decrease money demand back to D_m to restore its target of i

---

Definitions:

Unequal Wages

The disparity in earnings between individuals, often based on factors such as gender, ethnicity, age, or job role, instead of merit or performance.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

#MeToo Movement

A social movement against sexual abuse and sexual harassment where people publicize allegations of sex crimes committed by powerful and/or prominent men.

Gender Expectations

Societal norms and beliefs about appropriate roles, behaviors, activities, and attributes for men and women.