3. Answer the following questions on central banking. 3.1. Suppose in an election year, the economy started to slow down. At the same time, clear signs of inflationary pressures were apparent. How might the central bank with a primary goal of price stability react? How might members of the incumbent political party who are up for reelection react? 3.2. Suppose the government is heavily in debt. Why might it be tempting for the fiscal policymakers to sell additional bonds to the central bank in a move that it knows would be inflationary? 3.3. Suppose the government is heavily in debt. Why might it be tempting for the fiscal policymakers to sell additional bonds to the central bank in a move that it knows would be inflationary? 3.4. In 2012, the Federal Reserve joined many other central banks by making explicit a numerical target for inflation. Explain how stating that an annual inflation rate of 2 percent over the long run is most consistent with its mandate can help the Federal Reserve fulfill that mandate