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need help with homework problem thanks 5. Suppose that the central bank targets a specific interest rate r*. This means that the central bank automatically

need help with homework problem thanks

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5. Suppose that the central bank targets a specific interest rate r*. This means that the central bank automatically adjusts the money supply to ensure that r = r* at all times. Now do the comparative static exercise in response to an increase in money technology, when the central bank is dedicated to a target interest rate. Does this policy of targeting the interest rate appear to stabilize or destabilize output? Do the same exercise for an increase in animal spirits

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