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3. Using a simple central bank's balance sheet: 3.1. Show how the central bank may increase or decrease money supply. (5 points) 3.2. Explain how

3. Using a simple central bank's balance sheet: 3.1. Show how the central bank may increase or decrease money supply. (5 points) 3.2. Explain how "sterilization" works. (10 points) You may use numbers to explain your answers

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