Under very particular conditions, banks would like to borrow from the Fed and, rather than use these

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Under very particular conditions, banks would like to borrow from the Fed and, rather than use these borrowed funds to make loans, keep them in the form of excess reserves.

What would be the effect on the monetary base and the money supply of an increase in discount loans that are kept in the form of excess reserves?

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 17, 2024 11:01 PM

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Under very particular conditions, banks would like to borrow from the Fed and, rather than use these

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Macroeconomics Policy And Practice

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