IF THE FED PURSUES A STRATEGY OF TARGETING AN INTEREST RATE WHEN F...

35) If the Fed pursues a strategy of targeting an interest rate when fluctuations in money demand are prevalent, (a) fluctuations in the money supply will be small. (b) fluctuations in the money supply will be large. (c) the Fed will probably quickly abandon this policy, as it did in the 1960s. (d) the Fed will probably quickly abandon this policy, as it did in the 1950s. Answer: B Question Status: Previous Edition