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nitially the central bank balance sheet at Home is the following. Money supply is 500 pesos (M=500), the stock of local bonds is 100 (B=100),

nitially the central bank balance sheet at Home is the following. Money supply is 500 pesos (M=500), the stock of local bonds is 100 (B=100), and the foreign reserves are 400 dollars (R=400). As i...

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