If the Fed Raises the Discount Rate, What Will Be

question 186

Multiple Choice

If the Fed raises the discount rate, what will be the effect on the money supply?

• A)It will decrease the money supply.
• B)It will increase the money supply.
• C)No change in the money supply
• D)Not enough data to give an answer

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Definitions:

Iritis

An inflammation of the iris, the colored part of the eye, which can cause pain, redness, and potentially, loss of vision if not treated.

Astigmatism

A condition in which the cornea has an abnormal shape, which causes blurred images during near or distant vision.

Strabismus

A condition that results in a lack of parallel visual axes of the eyes; commonly called crossed eyes.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.