Author Question: When money demand shifts, the Fed must choose between targeting the money supply and targeting the ... (Read 56 times)

awywial · **on:** Jun 30, 2018

When money demand shifts, the Fed must choose between targeting the money supply and targeting the interest rate; it cannot target both.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Monetarists believe that discretionary monetary policy, and not discretionary fiscal policy, should be used to correct disequilibrium.
a. True
b. False
Indicate whether the statement is true or false