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An Increase in the Discount Rate Would

Question 29

Multiple Choice
An increase in the discount rate would:

An increase in the discount rate would:


A) decrease bank borrowing of reserves and reflect an expansionary monetary policy.
B) decrease bank borrowing of reserves and reflect a contractionary monetary policy.
C) increase bank borrowing of reserves and reflect an expansionary monetary policy.
D) increase bank borrowing of reserves and reflect a contractionary monetary policy.

Correct Answer:

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