Suppose the Fed is considering three different policy rules,as shown in the following table. 
(A)What is the difference between Rule 1 and Rules 2 and 3?
(B)What is the difference in the target inflation rate between Rules 2 and 3?
(C)Suppose the Fed is currently following Rule 2 and shifts to Rule 3.Which way will the AD curve shift? Why would the Fed make such a change in policy?
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