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

---

Definitions:

Nipple Erection

The condition in which the nipples become erect as a reflexive response to cold temperatures or stimulation.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, usually caused by sexually transmitted bacteria, leading to symptoms such as pelvic pain.

Douching

The practice of rinsing or cleaning out the vagina with water or other mixtures of fluids, which is often discouraged by healthcare professionals due to risks of infection.

Cotton Underwear

Undergarments made from cotton fabric, recommended for their breathability and comfort, often advised for better genital health.