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29. Assume that money demand does not depend on the opportunity cost of holding money. instead, the demand for real money balances is a constant fraction of output. In this situation, which of the following is true? A.) A change in government purchases G will not change the level of velocity V. B.) A change in government purchases G will not change the short-run level of output Y. C.) Both of the above are true. D.) None of the above is true. 30. Assume that animal spirits o are very stable over time, but autonomous money demand y fluctuates a lot from day to day or month to month. If the Fed wants to stabilize short-run output Y, which of the following procedures should it adopt? A.) Target the money supply M. B.) Target the real interest rate r. C.) Both of the procedures above are likely to have the same stabilizing effects on short-run Y, as long as most economic shocks arise from fluctuations in autonomous money demand y