(Table: Mexico's Central Bank Balance Sheet) Suppose Output in Mexico

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(Table: Mexico's Central Bank Balance Sheet) Suppose output in Mexico rises, causing money demand to change by 75 million pesos. What will happen to reserves, domestic credit, and the backing ratio? Explain how these changes take place. (Table: Mexico's Central Bank Balance Sheet) Suppose output in Mexico rises, causing money demand to change by 75 million pesos. What will happen to reserves, domestic credit, and the backing ratio? Explain how these changes take place.

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