According to the Taylor Principle, for Inflation to Be Stable

question 41

Multiple Choice

According to the Taylor principle, for inflation to be stable, the central bank must respond to an increase in inflation with ____ increase in the nominal interest rate.

• A) no
• B) an equal
• C) a greater
• D) a smaller

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Definitions:

Bailed Property

Property that is temporarily transferred to another party (the bailee) for custody or safekeeping, under an agreement called a bailment.

Physical Delivery

The actual transfer of an asset from seller to buyer or fulfilling a contractual agreement by transferring the physical commodity or asset.

Personal Property

Movable properties such as furniture, automobiles, and electronics, as opposed to real estate or immovable property.

Transfer of Title

The legal process of transferring ownership of property or assets from one person or entity to another.