1. Using the IS LM framework, analyze whether an increase in the instability of the money demand function would increase or decrease the desirability of intermediate targeting a monetary aggregate....

1. Using the IS – LM framework, analyze whether an increase in the instability of the money demand function would increase or decrease the desirability of intermediate targeting a monetary aggregate.

2. Describe the shift that took place in Federal Reserve policy in 1979. Explain the reasons for this shift.