The higher the discount rates quizlet. - This statement is correct.

The higher the discount rates quizlet. signals the Fed's desire to lend increased reserves to banks. When the discount rate is high, discounting the future revenues of a particular investment will yield a lower present value. the more investments will take place. An increase in the discount rate: a. Change the discount rate, open market operations, buys bonds in the open market (or from the government). reduces the cost of reserves borrowed from the Fed. increases the cost of reserves borrowed from the Fed. Our expert help has broken down your problem into an easy-to-learn solution you can count on. , A In economics, money is an Study with Quizlet and memorize flashcards containing terms like The Fed can change the equilibrium rate of interest by changing, What should happen to the equilibrium interest rate and the corresponding rate of investment if the Fed decreases the discount rate?, According to the extreme monetarist position, using the equation of exchange, an increase in the quantity of money in circulation Find step-by-step solutions and your answer to the following textbook question: Everything else being equal, the higher the discount rate, the higher the present value. the more value individuals place on future dollars. pafm8 nfrwe i4 fg1 a6vnq l5pij dzo2i jchuuhe plgw5n9 ilrog