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Why does the Fed not target the quantity of money? Question content area bottom Part 1 The Fed does not target the quantity of money
Why does the Fed not target the quantity of money? Question content area bottom Part 1 The Fed does not target the quantity of money because _______. A. the Fed believes that the demand for money is too unstable B. the Fed believes that it does not have enough control over the quantity of money because it is the banks that determine the quantity of loans and deposits C. the Fed believes that if it changed the demand for money, the interest rate would fall and the growth of aggregate demand would slow down D. the Fed believes that the quantity of money should remain constant E. Congress has passed laws that disallow this action by the Fed
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