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Essay

Macroeconomic Impact On Business Operations

Essay specific features

 

Issue:

Business

 

Written by:

Jennifer P

 

Date added:

June 29, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1092

 

Was viewed:

5021 times

 

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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...
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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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