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jasenka [17]
3 years ago
8

How does a reduction in the discount rate affect the money supply

Social Studies
1 answer:
galina1969 [7]3 years ago
7 0

Answer:

When the Fed lowers the discount rate, this increases excess reserves in commercial banks throughout the economy and expands the money supply. On the other hand, when the Fed raises the discount rate, this decreases excess reserves in commercial banks and contracts the money supply.

Explanation:

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The example mentioned in the question where Brian is conducting the study with sharing his views with the participants that he expects girls should perform better than boys in the experiment is example of experimenter bias.

The actual experiment should have been conducted without any thought sharing or acknowledgement which would have produced unbiased outcomes.But according to Brain's study, the expectations are conveyed ,therefore it will influence the result of the experiment as it becomes biased.

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