How does the discount rate affect the decisions of banks in

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Reference no: EM13456073

1.What are the factors that would influence the Federal Reserve in adjusting the discount rate?

2.How does the discount rate affect the decisions of banks in setting their specific interest rates?

3.How does monetary policy aim to avoid inflation?

4.How does monetary policy control the money supply?

5.How does a stimulus program (through the money multiplier) affect the money supply?

Reference no: EM13456073

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