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Lending through a discount window

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There are three moves the US Federal Bank can take to contract the economy. Demonstrate what happens to the price of reserves (x axis) and quantity of reserves (y axis) in graphs.

Note: price of reserve refers to the rate at which the bank is buying and selling.

1. Changing the requirements

2. Lending through a Discount Window

3. Engaging in Market Operations

Reference no: EM133260099

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