6. problems and applications q6 in the early 1980s, new legislation allowed banks to pay interest on checking deposits, which they could not do previously. if we define money to include checking deposits, this legislation money demand. which of the following is true if the federal reserve had maintained a constant money supply in the face of this change? check all that apply. the interest rate would have increased. aggregate output would have decreased. aggregate demand would have remained unchanged. true or false: to have maintained a constant market interest rate (the interest rate on nonmonetary assets) in the face of this change, the federal reserve would have had to decrease the money supply. true false if the fed had maintained a constant market interest rate, aggregate demand and output would have .
