"Monetary Policy Can Be Described Either in Terms of the Money

question 51

Multiple Choice

"Monetary policy can be described either in terms of the money supply or in terms of the interest rate." This statement amounts to the assertion that

• A)shifts of the money-supply curve cannot occur if the Federal Reserve decides to target an interest rate.
• B)the aggregate-demand curve will not shift in response to Federal Reserve actions if the Fed decides to target an interest rate.
• C)changes in monetary policy aimed at contracting aggregate demand can be described either as decreasing the money supply or as raising the interest rate.
• D)the activities of the Federal Reserve's bond traders are irrelevant if the Federal Reserve decides to target an interest rate.

---

Definitions:

Television Sets

Electronic devices designed to receive and display visual content with audio from over-the-air broadcasts, satellite, or cable sources.

Arizona

A state located in the southwestern region of the United States, known for its desert climate and landmarks like the Grand Canyon.

Distribution Center

A facility from which goods are distributed to stores or customers, optimizing the supply chain by consolidating shipments.

Dallas

A major city in the state of Texas, known for its cultural activities, historical significance, and economic contributions.