Everything Else Held Constant,in the Market for Reserves,when the Federal

question 98

Multiple Choice

Everything else held constant,in the market for reserves,when the federal funds rate equals the discount rate,lowering the discount rate

• A)increases the federal funds rate.
• B)lowers the federal funds rate.
• C)has no effect on the federal funds rate.
• D)has an indeterminate effect of the federal funds rate.

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