Assuming a decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant.
b. conduct an open market sale of bonds.
c. accommodate the decreased demand for money by the public by increasing the money supply.
d. All of the above
e. None of the above
Question 2
Albro Martin (1971) argues that the Interstate Commerce Commission (18871995) was
(a) never a case of capture.
(b) captured by the railroads themselves.
(c) captured by the customers of the railroads.
(d) too ineffective to warrant capture by anyone.
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