Question: Everything else held constant, in the market for reserves, when the federal funds rate is 2 % , lowering the discount rate from 5 %

Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the discount rate from 5% to 4%
lowers the federal funds rate.
raises the federal funds rate.
has no effect on the federal funds rate.
has an indeterminate effect on the federal funds rate.

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