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Lowering the Discount Rate Would Have Which of the Following

Question 24

Multiple Choice

Lowering the discount rate would have which of the following effects?


A) It would decrease the overall rate of taxation.
B) It would discourage banks from increasing their borrowing from the Federal Reserve.
C) It would encourage banks to borrow more and to extend more loans at lower rates.
D) It would increase the amount of federal bonds sold to foreign countries.

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