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Macroeconomic Impact On Business Operations
Essay specific features
Written by:
Jennifer P
Date added:
June 29, 2015
Level:
University
Grade:
A
No of pages / words:
4 / 1092
Was viewed:
5089 times
Rating of current essay:
Essay content:
According to the simulation, if the rate of the DR is lower than that of the FFR, banks are more inclined to borrow from The Fed. When this happens, the supply of money in the system is increased whereas when banks borrow from other banks the supply of money is unchanged. “An increase in the discount rate discourages commercial banks from obtaining additional reserves through borrowing from Federal Reserve Banks...
displayed 300 characters
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According to the simulation, if the rate of the DR is lower than that of the FFR, banks are more inclined to borrow from The Fed. When this happens, the supply of money in the system is increased whereas when banks borrow from other banks the supply of money is unchanged. “An increase in the discount rate discourages commercial banks from obtaining additional reserves through borrowing from Federal Reserve Banks...
displayed 300 characters
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