- Taylor Rule, t

please solve

When Hong Kong interest rate is higher than US interest rate, what would happen underthe currency board system?A. HKMA would delink HKD with USDB. HKMA would set a new HIBOR which is equal to US interest rateC. Notes-issuing banks would sell HKD from the marketD. B & CE. None of the above

4. Current Bank of Canada Policy in the Dynamic AD-AS Model Since September 2021 Canadian inflation according to the CPI has exceeded 5%. Consider the following statement from the Bank of Canada Governor Tiff Macklem in March 2022 While we expect inflation to come down in the second half of this demic eases, it is currently well above our target ... Higher oil prices have contributed to increased transportation costs, which, in turn, makes all goods more expensive. Food prices are being affected by extreme weather that has damaged crops across many regions. year as the pan- According to the above quotation, where do you think higher oil and food prices would appear in our dynamic AD-AS model? According to the model outlined in (1)-(5), what would you expect to happen to the endogenous variables Y;, Tt, it, and r¡? Explain your answer