Increases in the discount rate
A) are a tool of contractionary monetary policy.
B) do not affect bank behavior.
C) serve to expand the money supply.
D) encourage banks to hold less than the required amount of reserves.
Correct Answer:
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Q35: Which of the following is FALSE?
A) The
Q36: The direct effect of changes in the
Q37: For the Fed to attract buyers for
Q38: To increase aggregate demand, the Fed would
A)
Q39: In the short run, an increase in
Q41: The Fed would be pursuing a contractionary
Q42: Suppose the economy is currently in equilibrium.
Q43: The Fed would be pursuing an expansionary
Q44: If the economy is underutilizing its economic
Q45: An expansionary monetary policy results in lower
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