If the great majority of shocks to our system arise from unpredictable shocks to money demand, the preferred tactic of monetary policy is targeting

a. reserves.
b. interest rates.
c. M2.
d. reserves plus currency.

B

Economics

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A decrease in supply is caused by:

A) an increase in returns from other alternative activities. B) suppliers' expectations of lower prices in the future. C) an advancement in the technology for producing the good. D) a decrease in the price of a good using the same resources.

Economics

Why might it make sense to avoid paying for extended warranties on televisions and other small home appliances?

What will be an ideal response?

Economics