The Overnight Rate Is Determined by Equilibrium in the Market

The overnight rate is determined by equilibrium in the market for ________. The overnight rate ________.

A) loanable funds; equals the real interest rate minus the inflation rate
B) reserves; is the rate that sets the quantity of reserves demanded equal to the quantity of reserves supplied
C) loanable funds; equals the real interest rate
D) reserves; equals the real interest rate minus the inflation rate
E) money; equals the real interest rate

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