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Under Usual Circumstances,an Increase in the Discount Rate Causes

Question 4

Multiple Choice
Under usual circumstances,an increase in the discount rate causes
A) the federal funds rate to fall.
B) the federal funds rate to rise.
C) no change in the federal funds rate.
D) the supply of reserves to increase.
E) the supply of reserves to decrease.

Under usual circumstances,an increase in the discount rate causes


A) the federal funds rate to fall.
B) the federal funds rate to rise.
C) no change in the federal funds rate.
D) the supply of reserves to increase.
E) the supply of reserves to decrease.

Correct Answer:

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