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:

Physical Reactions

Bodily responses to external stimuli, which can be involuntary and are often used as indicators of health, stress, or emotional state.

Work Environment

The setting, conditions, and culture in which employees operate, which can significantly affect their performance and well-being.

Social Emotions

Emotions that depend on the thoughts, feelings, or actions of others, such as embarrassment, guilt, or pride.

Self-Conscience Emotions

Feelings that arise from reflection on our actions, which can include guilt, shame, embarrassment, and pride.