Problem
1. Distinguish between ‘interest-endogeneity' and ‘base-endogeneity'.
2. Why, in practice, are commercial banks unconstrained in their access to reserves?
3. Explain briefly the disadvantages of attempting to regulate monetary growth by non-price methods.
4. Why is the demand for reserves by commercial banks highly interestinelastic?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.