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1. UEL since you're aiming to increase mid-range power.
2. You'd have to shop around for that answer. I have OFT combined with a JDL catted UEL and I'd say it gets rid of 90% of the torque dip. It's going to run for about $800-900, a bit cheaper if uncatted.
3. No.
4. Not necessary, but certain aftermarket cat backs could provide better airflow. A deeper/louder sound could potentially mask the dip lol. I've got a Perrin 2.5 resonated cat back installed and it definitely made throttle response feel better without being obnoxiously loud.
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