Suppose That the Demand and Supply of Money Are Initially

question 118

Multiple Choice

Suppose that the demand and supply of money are initially in equilibrium,and that the demand for money increases.A monetary authority interested in keeping the money supply constant and the interest rate low must

• A)increase the money supply
• B)decrease the money supply
• C)increase the demand for money
• D)decrease the demand for money
• E)give up pursuing both goals at the same time and choose one or the other

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