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End-of-Chapter Exercise 19 Assume the monetary policy curve is given by 1+0.5 Calalate the real interest rate when the inflation rate is 2%, 4%, and
End-of-Chapter Exercise 19 Assume the monetary policy curve is given by 1+0.5 Calalate the real interest rate when the inflation rate is 2%, 4%, and 5%. (Round yourmsponses to two doom alpe When the inflation rate is 2%, the interest rate is When the inflation rate is 4%, the interest rate is g%. When the inflation rate is 5%, the interest rate is 35%. Plot the monetary policy curve by identifying the points indicated above on the graph to the right Using the multipoint curved line drawing tool, draw the MP curve showing the points found above. Properly label your curve. Carefully follow the instructions above, and only draw the required object. Assume now that the monetary policy curve is: r-2+0.5 Does the new monetary policy curve represent an autonomous tighteningor loosening of monetary poliey? A It represents a loosening of monetary policy yB. It represents a tightening of monetary policy C Monetary policy does not change. D Itis not possible to determine the answer without additional information Using the equation above, accurately draw the new monetary policy curve on the graph to the right Click the graph, choose a tool in the palette and follow the instructions to create your graph. All parts showing Clear A MacBook esc : FI F2 F3 F4 FS F6
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