According to the Taylor Principle, for Inflation to Be Stable

question 32

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

---

Definitions:

Moral Behavior

Actions that are in accordance with societal norms and values regarding right and wrong.

Think Morally

The process of evaluating actions and decisions based on ethical principles and considerations of right and wrong.

Freud

The founder of psychoanalysis, a method for treating psychological pathology through dialogue between a patient and a psychoanalyst.

Societal Norms

Unwritten rules and expectations that regulate the behavior of people within social groups and societies.