When the Fed raises the discount rate,all of the following result except

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When the Fed raises the discount rate, it increases the cost of borrowing reserves for member banks and sends a signal that it is moving toward a slower growth rate for the money supply. It also sends a signal that it is reluctant to lend reserves. However, it does not expand the lending capacity of the banking system, as raising the discount rate actually reduces the availability of funds for lending.

When the Fed Raises the Discount Rate,all of the Following