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