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Title: Macroeconomic Impact On Business Operations

Essay Details

Subject: Business
Author: Juan G
Date: September 12, 2015
Level: University
Grade: A
Length: 4 / 1092
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

According to the simulation, if the rate of the DR is lower than that of the FFR, banks are more inclined to borrow from The Fed. When this happens, the supply of money in the system is increased whereas when banks borrow from other banks the supply of money is unchanged. “An increase in the discount rate discourages commercial banks from obtaining additional reserves through borrowing from Federal Reserve Banks...

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According to the simulation, if the rate of the DR is lower than that of the FFR, banks are more inclined to borrow from The Fed. When this happens, the supply of money in the system is increased whereas when banks borrow from other banks the supply of money is unchanged. “An increase in the discount rate discourages commercial banks from obtaining additional reserves through borrowing from Federal Reserve Banks...

Showed next 250 characters

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