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g Consider how the following scenario would affect the money supply and, as a result, interest rates in the economy. a. When the Federal Reserve increases the discount rate, banks will borrow: multiple choice 1 fewer reserves and increase lending. fewer reserves and decrease lending. more reserves and decrease lending. more reserves and increase lending. b. This causes the money supply to (Click to select) and market interest rates to (Click to select) .

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g Consider how the following scenario would affect the money supply and, as a result, interest rates...
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