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  3. Study Set
    Economics Theory and Practice
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    Exam 8: Money Creation, Monetary Theory, and Monetary Policy
  5. Question
    What Is the Difference in the Potential Effect on the Money
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What Is the Difference in the Potential Effect on the Money

Question 192

Question 192

Essay

What is the difference in the potential effect on the money supply of a bank's borrowing from the Fed, and a bank's borrowing in the Federal Funds market?

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When the bank borrows from the Fed, new ...

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