Don't answer by pen paper A

Suppose that the Reserve Bank of New Zealand is following the Taylor rule. In 2018, it sets the official cash rate (the N.Z. equivalent of the overnight loans rate) at 6.175 percent a year. If the output gap in New Zealand is 1.2 percent a year, the inflation rate is percent.In an open market operation aimed at decreasing expenditure, the Bank of Canada government securities, I:I bank reserves, overnight rate