Question: Please help with this question (e) By how much will the total money supply in the economy change based on the transaction in Part (c)?

Please help with this question

(e) By how much will the total money supply in the economy change based on the transaction in Part (c)? [4 Points] (1) What is the discount rate? If the Federal Reserve decided to increase the discount rate what impact would it have on the money supply? Briefly explain why a change in the discount rate would cause a change in the money supply. [5 Points]

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