The graph below shows the monetary rule curve for the country of HOYA. According to this rule, the Central Bank will react to a rise in the current inflation rate from 0.5% to 1.5% by 2 1.8 1.6 1.4 1.2 1. 0.8 0.6 0.4 0.2 -> 0.6 0.8 1. 1.2 1.4 1.6 1.8 0.2 0.4 inflation (n) Real federal funds rate (R)

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A: Answer -

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