If the Fed increases the quantity of reserves, a new equilibrium is reached by a
A. rightward shift of the demand for reserves curve.
B. movement down the demand for reserves curve.
C. leftward shift of the demand for reserves curve.
D. movement up the demand for reserves curve.
Answer:B
If the Fed increases the quantity of reserves, a new equilibrium is reached by a
A. rightward shift of the demand for reserves curve. B. movement down the demand for reserves curve. C. leftward shift of the demand for reserves curve. D. movement up the demand for reserves curve.