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When the Federal Reserve implements monetary policy by targeting interest rates, movement of the demand curve for money requires that the Federal Reserve respond by

When the Federal Reserve implements monetary policy by targeting interest rates, movement of the demand curve for money requires that the Federal Reserve respond by ________ to keep interest rates at their target value.

Select one:

a.

adjusting the money supply

b.

increasing the money supply

c.

adjusting interest rates

d.

do nothing

e.

decreasing the money supply

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