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Discuss what happens to rs or rd when the discount window

1. Discuss what happens to Rs or Rd when the discount window of CB is not open for lending. Rs: supply of reserves, Rd: demand for reserves , DL: discount loans

2. Draw the case where the interbank rate is equal to the discount rate and DL=0. Show what happens to Rs, Rd, Rn, DL, , , when required reserve ratio falls.

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