If the Fed Increases the Discount Rate, What Happens to the Money

question 154

Multiple Choice

If the Fed increases the discount rate, what happens to the money supply?

• A)Increases
• B)Decreases
• C)Stays the same
• D)None of these

---

Definitions:

Principle Of "Double Effect"

An ethical theory that allows for actions which cause serious harm as a side effect of promoting some good end, under certain conditions.

Operational Excesses

Instances where activities exceed the bounds of standard, acceptable, or ethical practices within organizational operations.

Morally Justified

Deemed appropriate or right based on moral principles or ethical standards.

Nonabsolutist Consequentialists

A philosophical stance where the morality of an action is determined by its outcomes, but admits that moral rules can be overridden under certain circumstances.