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If the Fed lowers the discount rate i) What happens in the L-M diagram (liquidity preference)? a. L left c. M/P left b. L rig

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WOC 29 of Fed lowers discount rate, money leply will be inereased. As commercial bank can borrow money from regional Beserve1 If money demand ine reases, it will shift the LM cerve upward because at any given level of income and money supply, the in

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