A lower discount rate discourages banks from borrowing reserves and making loans. Therefore, if the Fed wants to expand the money supply.

Name: A lower discount rate discourages banks from borrowing reserves and making loans. Therefore, if the Fed wants to expand the money supply.
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A lower discount rate encourages banks to borrow more reserves from the Federal Reserve, which can lead to an increase in lending and expansion of the money supply.

A Lower Discount Rate Discourages Banks from Borrowing Reserves and Making