Multiple Choice
When the Fed decreases the discount rate, banks will
A) borrow more from the Fed and lend more to the public.The money supply increases.
B) borrow more from the Fed and lend less to the public.The money supply decreases.
C) borrow less from the Fed and lend more to the public.The money supply increases.
D) borrow less from the Fed and lend less to the public.The money supply decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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