The Steeper the Central Bank Reaction Function,the ________ the Central

question 12

Multiple Choice

The steeper the central bank reaction function,the ________ the central bank increases the interest rate in response to the current inflation rate being above the target inflation rate and the ________ the central bank decreases the interest rate in response to the actual inflation rate being below the target inflation rate.

• A) more; more
• B) more; less
• C) less; more
• D) less, less

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