angievlqz4338 angievlqz4338
  • 02-01-2020
  • Business
contestada

A higher Discount Rate tends to ___________ the price of loans because the overall supply of bank reserves tends to be smaller..

Respuesta :

beritop1089
beritop1089 beritop1089
  • 10-01-2020

Answer:

decrease

Explanation:

Discount rates on loans have an inverse relationship with loan prices; if the rate increases, the price will decrease and vice versa. In this case, a higher discount rate will decrease the price of loans as excess reserves in commercial banks and other lending institutions get smaller. This reduces the overall money supply in the economy.

Answer Link

Otras preguntas

How do octopus use Newton's third law of motion to escape from enemies
Which are true about forests? Choose all that apply. I. They are home to one-half of the world's people II. Traditional medicine, used by most of the world, com
how do you represent real- world problems involving ratios and rates with tables and graphs? PLEASE HELP! 10 POINTS!!!!!!
substitution method- r = -3s r= 10 - 4s
can you answer number six please
Which of the following sentences is in passive voice? The snow fell all day. The team shocked fans with a last-minute win. Pizza tastes better fresh out of the
what did karl marx believe was the solution to the injustice and inequality of the bourgeoisies exploitation of the proletarians regarding the means of producti
what is 25/1000 reduced
What were the outcomes of European Exploration?
3902.00 divided by 3