If the Federal Reserve Targets the Interest Rate and the Money

question 247

Multiple Choice

If the Federal Reserve targets the interest rate and the money demand curve shifts to the left,then the Fed

• A)cannot maintain the interest rate target.
• B)can maintain the interest rate target,but at a lower quantity of the money supply.
• C)can maintain the interest rate target,but at a higher quantity of the money supply.
• D)can maintain the interest rate target with no change in the money supply.

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Definitions:

Human Nature

The natural traits, encompassing modes of thought, emotion, and behavior, presumed to be common among all humans.

Aggression

Behavior aimed at causing harm or pain to others, which can be physical or verbal, and motivated by various factors including anger or frustration.

Life Instincts

The drive for ensuring survival of the individual and the species by satisfying the needs for food, water, air, and sex.

Death Instincts

The unconscious drive toward decay, destruction, and aggression.