If the Federal Reserve lowers the discount rate,then the money supply will rise.

Name: If the Federal Reserve lowers the discount rate,then the money supply will rise.
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When the Federal Reserve lowers the discount rate, it becomes cheaper for banks to borrow money from the Federal Reserve. This increases the reserves of banks and leads to an increase in the money supply through the process of credit creation.

If the Federal Reserve Lowers the Discount Rate,then the Money