The steeper the central bank reaction function, the ________ the central bank increases the interest rate in response to the current inflation rate being above the target inflation rate and the ________ the central bank decreases the interest rate in

response to the actual inflation rate being below the target inflation rate. A) more; more
B) more; less
C) less; more
D) less, less

A

Economics

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At higher interest rates, banks will want to hold more reserves

a. True b. False Indicate whether the statement is true or false

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