Question: Monetary policy can be conducted in various ways. 1. Explain why the demand for reserves curve is downward sloping. 2. Explain where the supply of

Monetary policy can be conducted in various ways.
1. Explain why the demand for reserves curve is downward sloping.
2. Explain where the supply of reserves comes from.
3. Explain why the supply of reserves curve is kinked.
4. Explain what actions the Fed can take to move the federal funds rate to its target.

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