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In July 2013, Peruvian Economists Suggested That the Peruvian Central

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In July 2013, Peruvian economists suggested that the Peruvian Central Bank might lower reserve requirements.
I. What problems might the Peruvian economy have been facing if its central bank was considering lowering reserve requirements?
II. If the Federal Reserve faced the same problems in the U.S. economy, which of its three traditional tools would it use to lower interest rates?

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I. If a central bank lowers reserve requ...

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