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Question
Lowering the discount rate would have which of the following effects?a. It would decrease the amount of bonds sold to multinational corporations.
b. It would discourage banks from increasing their borrowing from the Federal Reserve.
c. It would encourage banks to borrow more and to extend more loans at lower rates.
d. It would increase the amount of federal bonds sold to foreign countries.
e. It would decrease the overall rate of taxation for investment banks.
Answer
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