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"In the market for reserves, what determines demand? What determines supply? How does an increase in...

"In the market for reserves, what determines demand? What determines supply? How does an increase in the discount rate affect supply? An increase in Treasury deposits at the central bank? An open market purchase of securities? A purchase of foreign exchange? A reverse RP? A higher interest rate paid on excess reserves?"

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Answer #1

Market demand describes the demand for a given product and who wants to purchase it. This is determined by how willing consumers are to spend a certain price on a particular good or service. As market demand increases, so does price. When the demand decreases, price will go down as well.

Based on your market research results, you can make more informed decisions regarding the pricing, distribution channels, marketing mediums, or to identify opportunities to introduce a new product or service. These results will also help you to make more informed decisions about your existing operations and activities

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