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I advise you to graph this problem. If u=3% and u*=6%, Central bank that uses interest rates should target interest rate. This will result in

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I advise you to graph this problem. If u=3% and u*=6%, Central bank that uses interest rates should target interest rate. This will result in Y and P. O a. increase; lower; higher O b. reduce; lower; lower O c. increase; lower; lower w O d. None of the answers offered are accurate. O e. reduce; higher; higher Your answer is correct. The correct answer is: increase; lower; lower

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