If the Federal Reserve raises the discount rate,we would expect the

Name: If the Federal Reserve raises the discount rate,we would expect the
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When the Federal Reserve raises the discount rate, it becomes more expensive for banks to borrow money from the Fed. As a result, banks may reduce their lending to businesses and consumers, leading to a decrease in spending and a subsequent decrease in aggregate demand (AD). Therefore, we would expect the AD curve to decrease.

If the Federal Reserve Raises the Discount Rate,we Would Expect