Causing a decrease in discount loans to the banking system

Reference no: EM13700831

Suppose that the Fed raises the discount rate, causing a decrease in discount loans to the banking system. Assume that the decrease equals $950 in discount loans. Show how this change in discount loans affects the liabilities and assets of the Fed and the banking system. Compute the change in the monetary base and enter this value as your answer. Include a minus ("-") sign to indicate a negative value and enter a "0" to indicate no change.

Reference no: EM13700831

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