Answer:
C, gets larger without limit.
Explanation:
A decrease in discount rate ensures that financial institutions can borrow money at a cheaper rate. Since the lending rate of banks are decreased, the amount of available loans/credit is increased which in turn increases the lending activity of the financial institutions.
Simply put, a discount in rates of funds borrowed by a financial institution helps to increase the reserves of the institution as well as increase the supply of money in the economy.
From the question, a larger cash flow rate is obtainable from a decreased discount rates.
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