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Answer the following about monetary rules: Either graphically or mathematically derive either the Monetary Rule or an interest rate rule (Taylor Rule) for the Central

  1. Answer the following about monetary rules:
    1. Either graphically or mathematically derive either the Monetary Rule or an interest rate rule (Taylor Rule) for the Central Bank
      1. If doing it graphically, provide some description of why your graph looks the way it does.
      2. If doing it mathematically assuming only an interest rate lag in the IS curve.
    2. How is the slope of the MR curve affected by a central bank becoming more inflation averse?

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