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Let's return to the original conditions before you were granted the authority to pay interest on reserves. Redraw a reserve market diagra ocating point A

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Let's return to the original conditions before you were granted the authority to pay interest on reserves. Redraw a reserve market diagra ocating point A as before. (20 points for correct and completely label diagram) We now experience a shock to reserve demand so that the 'new' eserve demand curve is

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