An increase in the discount rate will result in: A) increase in bank

An increase in the discount rate will result in:

A) increase in bank reserves and a decrease in the federal funds rate.
B) increase in bank reserves and an increase in the federal funds rate.
C) decrease in bank reserves and a decrease in the federal funds rate.
D) decrease in bank reserves and an increase in the federal funds rate.

 

ANSWER

D

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