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Author Question: An increase in the discount rate by the Federal Reserve causes the money stock to expand. a. True ... (Read 49 times)

cnetterville

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  • Posts: 547
on: Jun 30, 2018
An increase in the discount rate by the Federal Reserve causes the money stock to expand.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

A lower discount rate discourages banks from borrowing reserves and making loans. Therefore, if the Fed wants to expand the money supply, it raises the discount rate.
 a. True
  b. False
  Indicate whether the statement is true or false


kthug

  • Sr. Member
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  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

False

Answer to Question 2

False


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