Use the market for central bank money to answer this question.Graphically illustrate and explain what effect an increase in the reserve deposit ratio (θ)will have on this market and on the equilibrium interest rate.

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The Answer of Use the market for central bank money to answer this question.Graphically illustrate and explain what effect an increase in the reserve deposit ratio (θ)will have on this market and on the equilibrium interest rate.

Use the Market for Central Bank Money to Answer This