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2. A. Explain the problem(s) associated with a Central Bank's nonsterilized intervention. (1 point) B. How can the problem(s) get mitigated with a sterilized intervention?

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2. A. Explain the problem(s) associated with a Central Bank's nonsterilized intervention. (1 point) B. How can the problem(s) get mitigated with a sterilized intervention? (3 points) C. Use a flow-chart to explain and elaborate your answers above. (6 points)

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