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Do the fundamental economic goals of fiscal policy differ from those of monetary policy? If the Federal Reserve finances the federal government deficits, what would happen to the supply of money?

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Reid Wolff
Reid WolffLv2
28 Sep 2019
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The discount rate for primary credit is the second most commonly used monetary policy tool. However, banks rarely borrow money at the discount rate from the Federal Reserve. Provide three reasons why the discount rate plays such an important role in monetary policy (and the functionality of financial markets in general) even though banks do no frequently borrow money from the Federal Reserve.

The discount rate for primary credit is the second most commonly used monetary policy tool. However, banks rarely borrow money at the discount rate from the Federal Reserve. Provide three reasons why the discount rate plays such an important role in monetary policy (and the functionality of financial markets in general) even though banks do no frequently borrow money from the Federal Reserve.

3.) The discount rate for primary credit is the second most commonly used monetary policy tool. However, banks rarely borrow money at the discount rate from the Federal Reserve. Provide three reasons why the discount rate plays such an important role in monetary policy (and the functionality of financial markets in general) even though banks do no frequently borrow money from the Federal Reserve.

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