The Slope of the Supply Curve of Reserves Can Be

question 91

Multiple Choice

The slope of the supply curve of reserves can be attributed to the fact that ________.

• A) the Fed fixes the supply of reserves
• B) the quantity of reserves supplied increases with the federal funds rate
• C) the quantity of reserves supplied decreases with the federal funds rate
• D) the supply of reserves is arbitrarily set by the World Bank

---

Definitions:

Meningitis

An inflammation of the meninges, the protective membranes covering the brain and spinal cord, often caused by infection.

Subarachnoid Space

The interval between the arachnoid membrane and the pia mater covering the brain and spinal cord, filled with cerebrospinal fluid.

Complex Reflex Action

A motor reflex that involves multiple interneurons in addition to the primary sensory and motor neuron, allowing for a more sophisticated response to a stimulus.

Sensory Impulse

An electrical signal that is generated in response to external stimuli and transmitted through the nervous system.