Question
Was wondering if you could let me know if I was correct on this fill in the blank If a switch occurs from deposits into
Was wondering if you could let me know if I was correct on this fill in the blank
If a switch occurs from deposits into currency, what happens to the overnight interest rate? Use the supply and demand analysis of the market for reserves to explain your answer.
In the market for reserves, the switch shifts to the _____ and shifts the demand curve to the ___
Since the ____ in desired reserves is _______ the ______ in the supply of reserves, the supply curve shifts by ________ the demand. Thus the overnight interest rate will _______
I wrote
left
left
fall
only a fraction
fall
left
rise
was wondering if I could get your opinion thanks .
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