contestada

9. If the Fed increases the discount rate: :
A. the money supply is likely to decrease.
O B. the money supply is likely to increase.
O
C. the money supply is not likely to change.
O D. the federal funds rate must decrease. .
O E. nominal interest rates will fall.

Respuesta :

Answer: The money supply is likely to increase

Explanation: it makes it cheaper for banks to borrow money which puts more money into circulation

Otras preguntas