Compared to the other tools the Fed uses to change the money supply, the discount window is used:
A. less often than open market operations, but more often than the reserve requirement.
B. more often than open market operations and the reserve requirement.
C. about the same as open market operations, but more often than the reserve requirement.
D. more often than open market operations, and about the same as the reserve requirement.
A. less often than open market operations, but more often than the reserve requirement.
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Refer to Figure 13-4. In the figure above, AD1, LRAS1 and SRAS1 denote AD, LRAS and SRAS in year 1, while AD2, LRAS2 and SRAS2 denote AD, LRAS and SRAS in year 2
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