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Why is it that a decrease in the discount rate does not normally lead to an increase in borrowed reserves? use the supply and demand analysis of the market for reserves to expla…

Why is it that a decrease in the discount rate does not normally lead to an increase in borrowed reserves? use the supply and demand analysis of the market for reserves to expla…
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Why is it that a decrease in the discount rate does not normally lead to an increase in borrowed reserves? use the supply and demand analysis of the market for reserves to explain?

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User Lycana
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The equilibrium interest rate (where supply of money equals demand for borrowing) will still fall below the discount rate.

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User Kirkland
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