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23 February, 09:15

When the central bank decides to increase the discount rate, the:?

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  1. 23 February, 09:50
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    If the Central Banks decides to increase the discount rate. Then the commercial banks are less likely to borrow from the federal reserves. The Central Bank has the authority to increase and decrease discount rates in order to monitor the inflation rates of money as well as the prices of basic commodities
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