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Suppose the central bank is operating under a corridor system . Suppose the central bank set the interest rate on central bank deposits above its

Suppose the central bank is operating under a

corridor system. Suppose the central bank set the interest rate on central bank deposits above its target interest rate.In this? case, assuming the central bank is able to supply plentiful reserves and central bank? deposits, without intervention the overnight market will clear at ?

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the interest rate on central bank deposits. an interest rate above the rate on central bank deposits. an interest rate below the central bank's target. the central bank's target interest rate. an interest rate between the central bank's target and the rate on central bank deposits

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