Suppose uncertainty about the future increased.

Adjust the following graph to illustrate the described change.

QUAN III YU MUNEY As a result of an increase in uncertainty about the future, the equilibrium interest rate and the equilibrium quantity of money Which of the following factors may also be responsible for a shift in the money demand curve? Check all that apply. The level of foreign direct investment The monetary base Foreign demand for a country's goods The rate of inflation Suppose that the demand for money is unstable and the Federal Reserve chooses to control interest rates. Which of the following would be a side effect of such a policy? Insignificant changes in interest rates Great changes in the money supply Insignificant changes in the money supply Difficulties in conducting monetary policy