If the demand for reserves did not fluctuate, the Bank of Canada could pursue both a reserves

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“If the demand for reserves did not fluctuate, the Bank of Canada could pursue both a reserves target and an interest-rate target at the same time.” Is this statement true, false, or uncertain? Explain.

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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Question Posted: Nov 09, 2018 12:18 PM

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If the demand for reserves did not fluctuate, the Bank of Canada could pursue both a reserves

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True In such a world hitting a reserves target would mean ...View the full answer

The Economics of Money Banking and Financial Markets

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