When Money Demand Shifts, the Fed Must Choose Between Targeting

question 48

True/False

When money demand shifts, the Fed must choose between targeting the money supply and targeting the interest rate; it cannot target both.​

---

Definitions:

Etiology Problems

Refers to the study of causation or origination of problems, particularly in the context of psychological or medical conditions.

Awareness Steps

The stages or measures taken to increase knowledge or consciousness about a particular topic or issue.

Motivational Interviewing

A counseling approach that helps to evoke from individuals their own motivations for making changes, through open-ended questions, affirmations, reflective listening, and summarizing.

Offending Behavior

Actions or conduct that violate social norms or laws, which can result in legal or social sanctions.