If the Fed was instead targeting interest rates and money demand dropped the Fed would likely increase the money supply.
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Q22: The primary policy tool used by the
Q23: The expected effect of quantitative easing (QE)
Q24: Cash drains decrease the monetary base, but
Q25: The monetary base will decrease when:
A) banks
Q27: Interest rates and the money supply tend
Q28: Transaction deposits, such as DDAs, expand when
Q29: The Federal Open Market Committee (FOMC) is
Q30: Reserve requirements are not useful for "fine
Q31: The Fed exclusively controls the money supply.
Q36: Real investment is encouraged by rising interest
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