anonymous
  • anonymous
The Federal Reserve wants to encourage banks to lend more money in order to increase the amount of money available. To do this, the Fed would __________. -reduce the money supply -raise the reserve ratio -reduce the discount rate -increase the discount rate
AP Econ
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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AAlixH
  • AAlixH
Are there any choices?
anonymous
  • anonymous
reduce the money supply raise the reserve ratio reduce the discount rate increase the discount rate
AAlixH
  • AAlixH
First, what do you think the answer is?

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More answers

anonymous
  • anonymous
increase the discount rate?
AAlixH
  • AAlixH
Well, the Federal Reserve uses discount rate to control monetary policy through bank borrowing. And during an economic recession, the Feds lower the discount rate.
anonymous
  • anonymous
so it would be that one?
AAlixH
  • AAlixH
I believe so
anonymous
  • anonymous
thank you.

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