c. Clarida, Gali and Gertler (2001) consider a small open economy DSGE model, in which the open economy is incorporated with imperfect competition, nominal price rigidity, and money. i. In the open economy framework, how should the Central Bank respond to deviation of domestic inflation from target? How does the open economy response differ from the closed economy case? ii. To what extent do international factors such as the terms of trade affect the monetary policy rule