If the Federal Reserve sets a target nominal interest rate, it can:
A. shift the money demand curve to the right.
B. independently set a target money supply.
C. only set a money supply target that is consistent with the nominal interest rate target.
D. achieve this target with any arbitrary supply of money.
Answer: C
You might also like to view...
Arguments for Protectionism
The consumption function is the relationship between ________, other things remaining the same
A) consumption expenditure and net taxes B) net taxes and disposable income C) consumption expenditure and the price level D) consumption expenditure and disposable income E) consumption expenditure and saving
The capture theory of regulation predicts that regulations bring ________ to producers and impose ________ on any individual consumer
A) small benefits; small costs B) small benefits; large costs C) large benefits; small costs D) large benefits; large costs E) large benefits; no costs
A non-rival good is a good which:
a. is produced by a monopoly. b. is produced by a cartel. c. can provide benefits to additional users at a zero marginal cost. d. is sold in a single market.