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If Reserve Demand Is Volatile, in Order for the Central

Question 52

Multiple Choice

 If reserve demand is volatile, in order for the central bank to keep interest rates from being volatile, it must: 


A)  target the quantity of reserves.?
B)  set targets for both interest rates and the quantity of reserves.?
C)  not target the interest rates.?
D)  let the quantity of reserves fluctuate.

Correct Answer:

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