When Bank A obtains a loan from the Fed,the

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When Bank A obtains a loan from the Fed, its reserves increase. This is because the loan is considered an injection of reserves into the banking system, which increases the bank's ability to lend out more money. The discount rate could be higher or lower than the federal funds rate, depending on various factors. The simple deposit multiplier may or may not be affected by this transaction, depending on whether or not the bank uses the additional reserves to make more loans.

When Bank a Obtains a Loan from the Fed,the