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2. Bangladesh Bank increased the Cash Reserve Requirement (CRR) from 5.5% to 6% on December 15, 2010. On that day Call Money Rate shot up

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2. Bangladesh Bank increased the Cash Reserve Requirement (CRR) from 5.5% to 6% on December 15, 2010. On that day Call Money Rate shot up to 175%! How do you explain this abrupt change in call money rate? Explain how this change in CRR may affect the equilibrium price level and output of the economy in the short run and the long run. Show graph

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