The slope of the supply curve of reserves can be attributed to the fact that:
A) quantity supplied of reserves decreases with the federal funds rate.
B) the supply of reserves is arbitrarily set by the World Bank.
C) the Fed fixes the supply of reserves.
D) quantity supplied of reserves increases with the federal funds rate.
Question 2
A decrease in spending on new homes will, other things equal
A) increase aggregate demand. B) increase aggregate supply.
C) decrease aggregate demand. D) decrease aggregate supply.
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