Suppose the money supply is $10,000. Banks hold no excess reserves and individuals hold no currency. The reserve requirement is 0. The Fed aims to...

Suppose the money supply is $10,000. Banks hold no excess reserves

and individuals hold no currency. The reserve requirement is 0.2. The

Fed aims to decrease the money supply by $2,000. Assume that for

every 1 percentage-point decrease in the discount rate, banks borrow

an additional $100. Determine the change in the discount rate required to achieve the plannedchange in the money supply.