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QUESTION

Interest-rate instability b. Exchange-rate instability c. Inflation d. Unstable growth 4.

A. Interest-rate instability b. Exchange-rate instability c. Inflation d. Unstable growth 4. Provide arguments for and against the proposition that a central bank should be allowed to set its own objectives. 3. Explain the costs of each of the following conditions, and explain who bears them. A. Interest-rate instability b. Exchange-rate instability c. Inflation d. Unstable growth 4. Provide arguments for and against the proposition that a central bank should be allowed to set its own objectives.

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