If the Fed decreases the discount rate, what happens to reserves and the money supply?
A)Reserves increase and the money supply decreases.
B)Both increase.
C)Reserves decrease and the money supply increases.
D)Both decrease.

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The Answer of If the Fed decreases the discount rate, what happens to reserves and the money supply?
A)Reserves increase and the money supply decreases.
B)Both increase.
C)Reserves decrease and the money supply increases.
D)Both decrease.

If the Fed Decreases the Discount Rate, What Happens to Reserves