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Heo, I would like the answers to part a and b please. Greatly appreciate, thanks!!! PART B: Do all questions for 30 points. QUESTION 2:
Heo, I would like the answers to part a and b please. Greatly appreciate, thanks!!!
PART B: Do all questions for 30 points. QUESTION 2: Briefly describe your understanding of the nature and significance of constrained discretion. 10 points). QUESTION 3. Describe the Monetary Policy Curve and assume that it is given by the expression: r=15+0.75n In which r = real rate interest; and = 1s the rate of inflation. (a). Calculate the values of the real interest rate when the inflation rate is 2%, 3%, 4% and 6%; draw the graph of the MP curve associated with your answers. (b). Assume now that the Monetary Policy Curve is r = 2.5 + 0.757; Does the new MP curve represent an autonomous tightening or loosening of monetary policy? Calculate the values of the real interest rate when the inflation rate is 2%, 3%, 4% and 6% and draw the new MP curve showing the shift from your answer in question (a) above. (c). What is the major significance of the monetary policy curve? (20 points)Step by Step Solution
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