An Increase in the Discount Rate ________ Bank Reserves and ________

question 263

Multiple Choice

An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases

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Definitions:

Spread

A term referring to the range or distribution of a set of data points or values, indicating how far apart data points are.

Histograms

A type of graphical representation of data distribution using bars of different heights to illustrate the frequency of data points within certain ranges.

Original Data

The initial dataset collected or observed before any processing, analysis, or transformation is applied.

Skewed Histogram

A graphical representation of data that is not symmetrical and leans towards one side, indicating a lack of normal distribution.