Ceteris Paribus,if the Fed Was Targeting the Quantity of Money

question 12

Multiple Choice

Ceteris paribus,if the Fed was targeting the quantity of money supplied and money demand dropped,the Fed would likely ________. If the Fed was instead targeting interest rates and money demand dropped,the Fed would likely ________.

• A)increase the money supply; do nothing
• B)do nothing; decrease the money supply
• C)decrease the money supply; do nothing
• D)do nothing; increase the money supply
• E)increase the money supply; decrease the money supply

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Definitions:

Duty Of Restitution

The legal obligation to compensate or restore the loss suffered by another party due to unlawful acts or breaches of contract.

Wrecked

In a broader context, 'wrecked' refers to something extensively damaged or completely destroyed.

Exculpatory Clause

A contract term that seeks to release one party from liability for harm or damage that may occur to another.

Residential Property

Real estate that is used for dwelling purposes, including single-family homes, apartments, condominiums, and townhouses.