Explain why a high discount rate might limit commercial bank borrowing from the Federal Reserve but very low discount rate may not encourage very much borrowing. What circumstances can you think of in which this would be true?

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The Answer of Explain why a high discount rate might limit commercial bank borrowing from the Federal Reserve but very low discount rate may not encourage very much borrowing. What circumstances can you think of in which this would be true?

Explain Why a High Discount Rate Might Limit Commercial Bank