You often read in the newspaper that the Fed has just lowered the discount rate. Does this

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You often read in the newspaper that the Fed has just lowered the discount rate. Does this signal that the Fed is moving to a more expansionary monetary policy? Why or why not?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:27 AM

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You often read in the newspaper that the Fed has just lowered the discount rate. Does this

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Most likely not If the federal funds rate target is initially below the discount rate and th...View the full answer

Economics of Money, Banking and Financial Markets

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