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Using the supply and demand analysis of the market for reserves, indicate how the following situations would affect central bank interest rates and economies in general. 1. The central bank eliminates interest paid on excess reserve. 2. The central bank conducts an open market sale of certain securities.

Using the supply and demand analysis of the market for reserves, indicate how the following situations would affect central bank interest rates and economies in general. 1. The central bank eliminates interest paid on excess reserve. 2. The central bank conducts an open market sale of certain securities.

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Using the supply and demand analysis of the market for reserves, indicate how the following situations would affect central bank interest rates and economies in general.

1. The central bank eliminates interest paid on excess reserve.

2. The central bank conducts an open market sale of certain securities.

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