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The factors that would shift the demand curve for reserves include

  • anticipated liquidity shocks
  • an economic expansion or contraction
  • a changing deposit base

In economics, a demand curve is a graph depicting the connection between the rate of a certain commodity and the amount of that commodity that is demanded at that rate. Demand curves may be used either for the fee-amount courting for an individual client, or for all customers in a selected market.

The demand curve will move downward from the left to the right, which expresses the law of call for as the rate of a given commodity increases, the quantity demanded decreases, all else being equal. Word this formula implies that price is the independent variable, and quantity is the established variable.

As defined above, the overall form of a demand curve is that it's miles downward sloping. The demand curve for maximum, if not all, items conforms to this principle. There can be rare examples of products that have upward-sloping demand curves. a very good whose call for curve has an upward slope is called a Giffen desirable.

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