Ask Question
2 January, 00:24

Why is it that a decrease in the discount rate does not normally lead to an increase in borrowed reserves? use the supply and demand analysis of the market for reserves to explain?

+3
Answers (1)
  1. 2 January, 02:12
    0
    The equilibrium interest rate (where supply of money equals demand for borrowing) will still fall below the discount rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Why is it that a decrease in the discount rate does not normally lead to an increase in borrowed reserves? use the supply and demand ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers