By raising the discount rate, the Federal Reserve ________ banks ...

[Frost2351]

By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves.
 
  A) short-changes B) prohibits C) discourages D) encourages

Question 2

According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
 
  A) It will increase aggregate demand. B) It will increase aggregate supply.
  C) It will decrease aggregate demand. D) It will decrease aggregate supply.

[wilsonbho]

Answer to Question 1

C

Answer to Question 2

A

[Frost2351]

Thanks for the timely response, appreciate it

[epscape]

Excellent