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The existence of a kink in the demand for reserves and in the supply of reserves is useful when _________________. A. the demand for reserves

The existence of a kink in the demand for reserves and in the supply of reserves is useful when _________________.

A.

the demand for reserves increases a lot and is not properly anticipated by the central bank.

B.

the supply of reserves increases a lot and is not properly anticipated by the central bank.

C.

the demand for reserves increases a lot and is correctly anticipated by the central bank.

D.

the central bank wants to hit the target.

E.

both A and B

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