Lowering the discount rate makes borrowing ___________ attractive to banks and may result in a(n) _________________ in the money supply.

1) less decrease

2) more, decrease

3) less, increase

4) more, increase

Raising the discount rate makes borrowing _________ attractive to banks and may result in a(n) _____________________ in the money supply.

1) less, increase

2) less, decrease

3) more, increase

4) more, decrease