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Question
An increase in the amount of discount loans by the Feda. increases the money supply by an amount equal to the increase in the loans times the multiplier.
b. decreases the money supply by an amount equal to the increase in the loans times the multiplier.
c. decreases the money supply by an amount greater than the increase in the loans times the multiplier.
d. increases the money supply by an amount lower than the increase in the loans times the multiplier.
Answer
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