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Alternatively, instead of open market operations, the central bank could also ________ _____(raise/lower) the discount rate to achieve the same objective (assuming banks would borrow
Alternatively, instead of open market operations, the central bank could also ________ _____(raise/lower) the discount rate to achieve the same objective (assuming banks would borrow directly from the ECB). We call this process to decisive action of alter in the price level __________________, which historically has been very painful for countries to implement in terms of its impact on GDP
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