When the Fed increases the discount rate, banks will| Oa. borrow more from the Fed and lend more to the public. The money supply increases Ob. borrow more from the Fed and lend less to the public. The money supply decreases Oc. borrow less from the Fed and lend more to the public. The money supply increases Od. borrow less from the Fed and lend less to the public. The money supply decreases

When the Fed increases the discount rate, banks will| Oa. borrow more from the Fed and lend more to the public. The money supply increases Ob. borrow more from the Fed and lend less to the public. The money supply decreases Oc. borrow less from the Fed and lend more to the public. The money supply increases Od. borrow less from the Fed and lend less to the public. The money supply decreases

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 15P

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The table above shows Econland’s economy aggregate demand and aggregate supply schedules. Econland’s potential GDP is $400 billion. (6). What specific fiscal policy would you prescribe to close the gap? (7). What specific monetary policy would you prescribe to close the gap?
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