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If the Federal Reserve Banks DECREASE their aggregate Discount Window lending by $100 million and the reserve requirement is 10%, what will happen to the
If the Federal Reserve Banks DECREASE their aggregate Discount Window lending by $100 million and the reserve requirement is 10%, what will happen to the Money Supply? (Assuming the expansion/ contraction process reaches its theoretical limit and all other things held constant).
a. Increase by $1 billion
b. Decrease by $1 billion
c. Increase by $100 million
d. Decreased by $100 million
e. Nothing
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