An Increase in the Interest Rate Due to Taylor Principle

question 57

Multiple Choice

An increase in the interest rate due to Taylor principle changes result in ________.

• A) a movement up the monetary policy curve
• B) a movement down the monetary policy curve
• C) an upward shift of the monetary policy curve
• D) a downward shift of the monetary policy curve

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Definitions:

Avoid the Risk

A risk management strategy involving actions to prevent exposure to a risk, often by choosing not to engage in an activity.