The discount rate changed from 1.75% (March 4, 2020) to 0.25% (March 16, 2020) Source: Federal Reserve Bank of San Francisco 1. According to the above statement, this means that: A. the money supply increased and the interest rates increased B. the money supply decreased and the interest rates decreased C. the money supply increased and the interest rates decreased D. the money supply did not change and the interest rates increased E. the money supply and interest rates did not change F. the money supply and interest rates increased
The discount rate changed from 1.75% (March 4, 2020) to 0.25% (March 16, 2020) Source: Federal Reserve Bank of San Francisco 1. According to the above statement, this means that: A. the money supply increased and the interest rates increased B. the money supply decreased and the interest rates decreased C. the money supply increased and the interest rates decreased D. the money supply did not change and the interest rates increased E. the money supply and interest rates did not change F. the money supply and interest rates increased
Chapter20: Monetary Policy
Section: Chapter Questions
Problem 4SQP
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Transcribed Image Text:The discount rate changed from 1.75% (March 4, 2020) to 0.25% (March 16, 2020)
Source: Federal Reserve Bank of San Francisco
1. According to the above statement, this means that:
A. the money supply increased and the interest rates increased
B. the money supply decreased and the interest rates decreased
C. the money supply increased and the interest rates decreased
D. the money supply did not change and the interest rates increased
E. the money supply and interest rates did not change
F. the money supply and interest rates increased
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