When the Fed raises the discount rate, all of the following result except Multiple Choice O...

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When the Fed raises the discount rate, all of the following result except Multiple Choice O The cost of borrowing reserves for member banks increases. It sends a signal that it is moving toward a slower growth rate for the money supply. It sends a signal that it is reluctant to lend reserves. It expands the lending capacity of the banking system. When the Fed raises the discount rate, all of the following result except Multiple Choice O The cost of borrowing reserves for member banks increases. It sends a signal that it is moving toward a slower growth rate for the money supply. It sends a signal that it is reluctant to lend reserves. It expands the lending capacity of the banking system.

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