REFERRING TO FIGURE 18-2, AN INTEREST RATE TARGET REQUIRES THAT TH...

38) Referring to Figure 18-2, an interest rate target requires that the central bank (a) increase the money supply when money demand falls. (b) increase the money supply when interest rates fall. (c) reduce the money supply when money demand increases. (d) reduce the money supply when interest rates fall. (e) hold the money supply constant when money demand changes. Answer: D Question Status: New