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    Principles of Macroeconomics Study Set 8
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    Exam 16: The Monetary System: The Feds Tools of Monetary Control
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    If the Discount Rate Is Raised Then Banks Borrow
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If the Discount Rate Is Raised Then Banks Borrow

Question 94

Question 94

Multiple Choice

If the discount rate is raised then banks borrow


A) more from the Fed so reserves increase.
B) more from the Fed so reserves decrease.
C) less from the Fed so reserves increase.
D) less from the Fed so reserves decrease.

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