23. If the central bank accommodates an increase in demand for bank reserves, which of the following best describes the initial impact of that action? (a) The monetary base will expand (b) The short term interest rate will increase (c) Inflation expectations will increase (d) The exchange rate will depreciate 24. Which of the following has been given as a reason for central banks to shift from quantity setting to rate setting approaches to monetary policy? (a) Interest rates are too politically sensitive to be left to the market (b) Money demand is highly unstable (c) Interest rates should be set in bond markets rather than money markets (d) It is important to coordinate interest rates internationally