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(c) Finally, consider a central bank with a dual mandate i.c. MP: R; f = 7T1(1T1_1 1?] + fit/1;]. Assume that :T: = 0.2. Modify

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(c) Finally, consider a central bank with a dual mandate i.c. MP: R; f = 7T1(1T1_1 1?] + fit/1;]. Assume that :T: = 0.2. Modify the spreadsheet to reect this assumption. What is the effect of this change on prediction of demand shock (a = 1)? Explain and include a picture of the dynamics. (Note: I do not want the Whole spreadsheet, just the picture of the path of output, ination, and the interest rate.) Answer: See spreadsheet on Moodlc for

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