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Which of the Following Is True of the Quantity of Reserves

Question 81

Multiple Choice

Which of the following is true of the quantity of reserves demanded?


A) The quantity of reserves demanded is constant over time for almost every bank.
B) The quantity of reserves demanded increases as the federal funds rate falls.
C) The quantity of reserves demanded increases as the inflation rate increases.
D) The quantity of reserves demanded increases at a constant rate over time.

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