In the 1979-82 period,the Fed pursued a monetary policy which targeted the growth rate of the money supply.Given the effects of financial deregulation on money demand you would expect,ceteris paribus,

Question

Quizplus · Accepted Answer

Financial deregulation increased the volatility of money demand, making it difficult for the Fed to control interest rates solely through the growth rate of the money supply. As a result, interest rates became more volatile during this period.

In the 1979-82 Period,the Fed Pursued a Monetary Policy Which