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Aside from interest rate manipulation, central banks can conduct monetary policies through open market operations, discount window lending, and adjustment in reserve requirement. In the

Aside from interest rate manipulation, central banks can conduct monetary policies through open market operations, discount window lending, and adjustment in reserve requirement. In the end, the goal of these latter operations is to increase (decrease) money supply, which, in turn, stimulates (contracts) economic activities. Identify and clearly explain the key limitations of these operations.

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