REFERRING TO FIGURE 18-2, WHEN MONEY DEMAND FLUCTUATES BETWEEN MD′...

39) - TEST BANK CHAPTER 18 CONDUCT OF MONETARY POLICY GOALS AND TARGETS TÀI CHÍNH TIỀN TỆ
TEST BANK CHAPTER 18 CONDUCT OF MONETARY POLICY GOALS AND TARGETS TÀI CHÍNH TIỀN TỆ
39) Referring to Figure 18-2, when money demand fluctuates between M

d′

and M

d′′

, a policy of interest rate targeting results in (a) interest rate fluctuations between i′ and i′′. (b) money supply fluctuations between M

s′

and M

s′′

. (c) interest rate fluctuations between i

*

and i′′. (d) money supply fluctuations between M

*

and M

s′′

. (e) no fluctuations in either the interest rate or money supply. Answer: B Question Status: New