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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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