When the Fed decreases the discount rate, banks are likely tothe money supplytheir lending andA) increase; increasesB) increase; decreasesC) decrease; increasesD) decrease; decreases

The answer is- B) increase, increases When the fed decrease the discount rate, banks are likely to…

Answered: When the Fed decreases the discount…

When the Fed decreases the discount rate, banks are likely to their lending anc the money supply O A) increase; increases B) increase; decreases decrease; increases D) decrease; decreases

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter13: Monetary Policy

Section: Chapter Questions

Problem 5E

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Question

When the Fed decreases the discount rate, banks are likely to
the money supply
their lending and
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases

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