Figure 13-2
-Figure 13-2 above illustrates an economy with an unstable commodity demand and two possible Fed policies,a constant real money supply or a constant interest.Which policy target promotes a stable economy best?
A) constant money supply,A₀ to A₁
B) constant money supply,B₀ to B₁
C) constant interest rate,A₀ to A₁
D) constant interest rate,B₀ to B₁
Correct Answer:
Verified
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