Solved: What should central bank do in response to natural disaster, Macroeconomics

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What should central bank do in response to natural disaster

Problem

Suppose that there is a natural disaster that destroys some of the nation's capital stock. The central bank's goal is to stabilize the price level. Given this goal, what should the central bank do in response to the natural disaster? Explain with the aid of diagrams.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What should central bank do in response to natural disaster

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