Based on the Taylor Principle,a Central Bank's Endogenous Response of Decreasing

question 11

Multiple Choice

Based on the Taylor Principle,a central bank's endogenous response of decreasing interest rates when inflation falls

• A)causes an upward movement along the monetary policy curve.
• B)causes a downward movement along the monetary policy curve.
• C)shifts the monetary policy curve upward.
• D)shifts the monetary policy curve downward.