Author Question: An increase in the discount rate by the Federal Reserve causes the money stock to expand. a. True ... (Read 11 times)

cnetterville

  • Hero Member
  • *****
  • Posts: 547
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
  • ****
  • Posts: 332
Answer to Question 1

False

Answer to Question 2

False



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

For a complete list of videos, visit our video library