When the cash rate is 6 per cent, the quantity of reserves demanded is $100 billion. If the quantity of reserves is actually $110 billion, then the

Name: When the cash rate is 6 per cent, the quantity of reserves demanded is $100 billion. If the quantity of reserves is actually $110 billion, then the
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When the quantity of reserves exceeds the quantity demanded, the cash rate typically falls as banks have excess reserves and are willing to lend them at lower rates.

When the Cash Rate Is 6 Per Cent, the Quantity