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how to answer those questions (25 Marks) Price stability is one of the main macroeconomic objectives hence monetary authorities pursue monetary policy to Suppose that

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how to answer those questions

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(25 Marks) Price stability is one of the main macroeconomic objectives hence monetary authorities pursue monetary policy to Suppose that you are a member of the Monetary Policy Committee of the SA Reserve Bank. The economy is experiencing a sharp increase in inflation. 2.1 What are the options for the SARB, what response do you recommend and why? [hint: tools of monetary policy] (15] 2.2 Despite its success, monetary policy has certain limitations and faces real-world complications. Briefly discuss some of the complications

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