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

Understand the different needs and values of participatives, traditionals, and individualists in the workplace.

Recognize the Big Five personality traits and their association with leadership effectiveness.

Identify and appreciate cultural influences on interpersonal relationships, specifically Confucian ideals.

Learn the concept of cardinal dispositions and their significance in shaping personality.

---

Definitions:

Useful Life

The estimated period over which an asset is expected to be usable by a business.

Purchase Machinery

The acquisition of machines or equipment for the production of goods or services.

Discount Rate

This is the discount rate used in the process of discounted cash flow analysis to find out the current value of cash flows expected in the future.

Annual Cost Savings

The reduction in costs achieved during a fiscal year, often as a result of process improvements or cost-cutting measures.