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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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