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  3. Study Set
    Macroeconomics Principles Applications
  4. Exam
    Exam 14: The Federal Reserve and Monetary Policy
  5. Question
    By Raising the Discount Rate, the Federal Reserve ________ Banks
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By Raising the Discount Rate, the Federal Reserve ________ Banks

Question 137

Question 137

Multiple Choice

By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves.


A) encourages
B) discourages
C) prohibits
D) short-changes

Correct Answer:

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