If the Federal Reserve wishes to maintain an unchanging target interest rate and the demand for money is falling, then the Fed will:
A) raise the inflation rate.
B) reduce the demand for money.
C) increase the supply of money.
D) decrease the supply of money.

Question

Quizplus · Accepted Answer

The Answer of If the Federal Reserve wishes to maintain an unchanging target interest rate and the demand for money is falling, then the Fed will:
A) raise the inflation rate.
B) reduce the demand for money.
C) increase the supply of money.
D) decrease the supply of money.

If the Federal Reserve Wishes to Maintain an Unchanging Target