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Ceteris paribus, if the Fed was targeting the quantity of money supplied and money demand increased, the Fed would likely ______________. If the Fed was
Ceteris paribus, if the Fed was targeting the quantity of money supplied and money demand increased, the Fed would likely ______________. If the Fed was instead targeting interest rates and money demand increased, the Fed would likely _______________.
A. Decrease the money supply: do nothing
B. Increase the money supply: do nothing
C. Increase the money supply: decrease the money supply
D. Do nothing: decrease the money supply
E. Do nothing: increase the money supply
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