Question: Select the answer that correctly describes the effect on the money supply of the following monetary policy: The Fed decreases the discount rate. Results? Question
Select the answer that correctly describes the effect on the money supply of the following monetary policy:
The Fed decreases the discount rate. Results?
Question options:
a
Increases excess reserves and the money supply.
b
Decreases excess reserves and the money supply.
c
Does not change the reserves or the money supply.
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