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With Respect to the Discount Rate Policy, an Increase in the Discount

Question 23

Multiple Choice

With respect to the discount rate policy, an increase in the discount rate, other things equal, will


A) increase the amount of lending by banks
B) decrease the amount of lending by banks
C) not change the amount of lending by banks
D) reduce the borrower's credit risk
E) make the banks more prone to withdrawal risk

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