What is the ultimate impact on the money supply of an increase in the discount rate?

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2006-10-04 14:42:54 · 2 answers · asked by mschestnut2k 2 in Social Science ➔ Economics

Other things being equal, it reduces the growth of the money supply compared with what it would have been if the discount rate had stayed the same.

2006-10-07 20:55:09 · answer #1 · answered by MBK 7 · 0⤊ 0⤋

The money supply either shrinks, stays the same, or grows at a slower rate, depending on the starting point.

2006-10-04 21:53:18 · answer #2 · answered by szydkids 5 · 0⤊ 0⤋