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

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