If Money Demand Increases and the Fed Attempts to Keep

question 43

Multiple Choice

If money demand increases and the Fed attempts to keep interest rates stable,then

• A)the money supply will increase
• B)the money supply will decrease
• C)velocity will increase
• D)velocity will decrease
• E)the Fed will sell government securities

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Definitions:

Psychodynamic Theory

A psychological perspective that emphasizes unconscious psychological processes (e.g., wishes, fears, and desires) and contends that childhood experiences are crucial in shaping adult personality.

Oedipus Complex

A psychoanalytic concept describing a child's feelings of desire for the opposite-sex parent and jealousy towards the same-sex parent.

Electra Complex

A Freudian concept involving a girl's psychosexual competition with her mother for possession of her father, seen as a counterpart to the Oedipus complex in boys.

Analytical Psychology

The study of the personal and collective unconscious developed by Carl Jung.