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Lowering the Federal Funds rate and Discount rate increases the money supply because it Select one: A. adds reserves to the bank's balance sheet. B.

Lowering the Federal Funds rate and Discount rate increases the money supply because it

Select one:

A. adds reserves to the bank's balance sheet.

B. encourages bank lending by making borrowing easier and cheaper.

C. makes the Deposit Multiplier bigger.

D. gives banks the ability to print currency.

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