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In the market for reserves, say that the federal funds rate is 2.5% and the discount rate is at 5.5%. If the Federal Reserve
In the market for reserves, say that the federal funds rate is 2.5% and the discount rate is at 5.5%. If the Federal Reserve Bank securities in the open market, then the supply curve will shift right and the discount rate will O buys; rise O buys; fall O sells; rise O sells; fall
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