Author Question: If the Federal Reserve targets the money supply, and the money demand curve shifts to the left, then ... (Read 110 times)

geoffrey

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If the Federal Reserve targets the money supply, and the money demand curve shifts to the left, then the Fed
 
  A) can maintain the money supply target, but at a lower interest rate.
  B) can maintain the money supply target with no change in the interest rate.
  C) can maintain the money supply target, but at a higher interest rate.
  D) cannot maintain the money supply target.

Question 2

During 2008, oil price increases
 
  A) did not shift the short-run aggregate supply curve as far to the left as similar increases had 30 years earlier.
  B) shifted the short-run aggregate supply curve farther to the left than similar increases had 30 years earlier.
  C) shifted the aggregate demand curve farther to the left than similar increases had 30 years earlier.
  D) shifted the aggregate demand curve farther to the right than similar increases had 30 years earlier.



zogaridan

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Answer to Question 1

A

Answer to Question 2

A



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