Question 3: Which do you think would be more harmful to the economyan inflation rate that averages 5 percent a year that has a high standard deviation or an inflation rate of 7 percent that 5 has a standard deviation close to zero? Question 4: A central bank should remain vague about the relative importance it places on its various objectives. That way, it has the freedom to choose which objective to follow at any point in time. Assess this statement in light of what you know about good central bank design