If the Fed Is Targeting Interest Rates and Money Demand

question 11

Multiple Choice

If the Fed is targeting interest rates and money demand increases,an appropriate policy response would be to

• A)increase reserve requirements.
• B)increase the discount rate.
• C)buy U.S. Treasury securities from government bond dealers.
• D)increase government spending.
• E)None of these choices are correct.

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Definitions:

Conduct Over Time

Refers to the patterns or manners of behavior that an individual or organization demonstrates consistently over a period.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action within an organization.

Cultural Ethos

The characteristic spirit, moral values, and customs of a community or society.

Moral and Ethical Codes

Principles and standards of behavior that guide individuals and organizations in making decisions that are considered right and good.