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

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(Table: Mexico's Central Bank Balance Sheet) Suppose the central bank engages in an open-market purchase of 300 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 the central bank engages in an open-market purchase of 300 million pesos. What will happen to reserves, domestic credit, and the backing ratio? Explain how these changes take place.

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