ECO/372

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Im not sure what the answer, is what are the factors that would influnce the federal reserves in adjusting the discount rate??

please help

  • ECO/372 -

    SOME factors include:
    The inflation rate is an important factor influencing the Fed’s decision to adjust the discount rate. During periods of recession, the Fed will lower the discount rate to attempt to stimulate growth in the economy. The reserve requirements and changes in market conditions also play a role in adjusting the discount rate.

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