If Monetary Policymakers Are More Concerned About Output Fluctuations Than

question 42

Multiple Choice

If monetary policymakers are more concerned about output fluctuations than inflation fluctuations:

• A) they will choose a relatively steep monetary policy reaction curve in which movements in the real interest rates are small.
• B) they will choose a relatively flat monetary policy reaction curve in which movements in the real interest rates are small.
• C) they will choose a relatively steep monetary policy reaction curve in which movements in the real interest rates are large.
• D) they will choose a relatively flat monetary policy reaction curve in which movements in the real interest rates are large.

---

Definitions:

Caffeine

A stimulant compound found in coffee, tea, chocolate, and various energy drinks and medications, known for boosting alertness and energy levels.

Alcohol

A psychoactive substance commonly found in beverages like beer, wine, and liquor, known for its effects on the body and mind, including potential for addiction.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.

Asian Americans

Individuals in the United States with origins in the far eastern, Southeast Asian, or the Indian subcontinent.