Economists who state that the money supply is endogenous will argue the following:

A  All of the available answers are correct.

B  Commercial banks and bank customers determine how much money there will be in the economy, and that the central bank has to accommodate them in order to ensure the federal funds rate goes above the central bank’s target rate.

C  Commercial banks and bank customers determine how much money there will be in the economy, and that the central bank has to accommodate them in order to ensure the payment system and banking system is stable.

D  Commercial banks and investment banks determine how much money there will be in the economy, and that the central bank has to accommodate them in order to ensure the federal funds rate goes below the central bank’s target.