If the Fed wants to increase the money supply,it should increase the discount rate.

Question

Quizplus · Accepted Answer

If the Fed wants to increase the money supply, it should lower the discount rate. This makes it cheaper for banks to borrow from the Fed, which encourages them to lend more money to consumers and businesses, increasing the money supply in the economy. 
Conversely, if the Fed increases the discount rate, it becomes more expensive for banks to borrow from the Fed, which discourages them from lending and reduces the money supply in the economy.

If the Fed Wants to Increase the Money Supply,it Should