When the Fed uses money growth rates as an intermediate target, ...

[tsand2]

When the Fed uses money growth rates as an intermediate target, it implicitly assumes that the velocity of money is constant over time, at least in the short run.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If the government wanted to reduce the quantity of a good traded, it could do so by:
 a. setting a price ceiling for the good below the equilibrium price.
  b. setting a price floor for the good above the equilibrium price.
  c. taxing the good more heavily.
 d. doing any of the above.

[lcapri7]

Answer to Question 1

True

Answer to Question 2

d