If the relationship between consumer and business spending and investment decisions and the interest rate is stable,
A)the demand for money and nonmoney assets must be unstable.
B)money supply targets are preferred.
C)interest rate targets are preferred.
D)the real side of the economy must be unstable.

Question

Quizplus · Accepted Answer

If the relationship between consumer and business spending and investment decisions and the interest rate is stable, it implies that changes in the interest rates can effectively influence these variables. In such a scenario, interest rate targets are preferred over money supply targets as they can be used to control inflation and stabilize economic growth.

If the Relationship Between Consumer and Business Spending and Investment