When the Federal Reserve increases the discount rate, it is using expansionary monetary policy.

Name: When the Federal Reserve increases the discount rate, it is using expansionary monetary policy.
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When the Federal Reserve increases the discount rate, it is using contractionary monetary policy, which is meant to slow down economic growth and curb inflation. Expansionary monetary policy involves lowering interest rates and increasing the money supply to stimulate economic growth.

When the Federal Reserve Increases the Discount Rate, It Is