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By raising or lowering the _______, the fed changes the cost of money for banks, which impacts the incentive to borrow reserves. reserve ratio discount rate money multiplier yie…
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By raising or lowering the _______, the fed changes the cost of money for banks, which impacts the incentive to borrow reserves. reserve ratio discount rate money multiplier yie…
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Sep 17, 2018
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By raising or lowering the _______, the fed changes the cost of money for banks, which impacts the incentive to borrow reserves. reserve ratio discount rate money multiplier yield
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Alice Wonder
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The answer is Discount rate
If the discount rate is high, The banks' tendency to borrow from the Federal Government would be reduced.
This will make the private banks reduce the amount of investments for its operations which will reduce consumer's tendency to spent their money
Kingbeencent
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Sep 22, 2018
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