Author Question: Assume that the Fed is targeting interest rates. If a desirable new type of bank deposit increases ... (Read 34 times)

V@ndy87 · **on:** Jun 30, 2018

Assume that the Fed is targeting interest rates. If a desirable new type of bank deposit increases the demand for money at a given level of income and the rate of interest, then

a. shocks to money demand will affect income.
b. a negative shock to money demand will not affect income.
c. inflation will decrease as the money supply decreases.
d. both a and c.
e. None of the above

Question 2

Today's corporate structures have very little in common with the joint-stock companies of colonial America.

Indicate whether the statement is true or false