1. Review the recent FOMC statement and answer the following questions: (a What are the Committee 'employment and price goals 7 (c ((1 Did all FOMC members vote for the monetary policy action 7 If not , who dissented ) (b) What is the Committee's target range for the federal funds rate? ) What is the Committee's longer -run ination goal ? ) and what was their policy proposal? 2. Use Okun's law to . . . (a) . , . rewrite the central bank loss function in a way that better reects the dual mandate of the Federal Reserve in terms of unemployment and inflation, and . . . (b) . . . then determine the value of in the central bank loss function that would result in an equal weighting of the two terms in the dual mandate of the Federal Reserve. 3. Referring to China unempectedly cuts reverse repo rate by most in 5 years to support virus-hit economy: (a) Given the change in the reverserepo rate discussed in the article how many basis points are in one percent 7 (b) What was the term (number of days) of the reverse repo rate that the PBOC changed. (c) A change in the policy rate can be categorized via the optimal rat rule in terms the change in inflation as follows: 0 expansionary if the new rate is lower than what the change in ination indi cated . 0 contractionary if the new rate is higher than what the change in ination indicated 0 neither expansionary or contractz'onory if the new rate is what the change in ination indicated If there was no change in inflation when the PBOC changed the reverserepo rate7 was their action expansionary, contractionary7 or neither? Briefly explain