Most Economists Believe That the Best Monetary Policy Target Is A

If the Federal Reserve targets the money supply,and the money demand curve shifts to the left,then the Fed A) cannot maintain the money supply target. B) can maintain the money supply target, but at a lower interest rate. C) can maintain the money supply target, but at a higher interest rate. D) can maintain the money supply target with no change in the interest rate.

If the Federal Reserve targets the interest rate and the money demand curve shifts to the left,then the Fed A) cannot maintain the interest rate target. B) can maintain the interest rate target, but at a lower quantity of the money supply. C) can maintain the interest rate target, but at a higher quantity of the money supply. D) can maintain the interest rate target with no change in the money supply.