Conducting Monetary Policy So That the Overnight Rate = π

Multiple Choice

Conducting monetary policy so that the overnight rate = π + 0.5(π - 2) + 0.5 (GDP gap) , where the overnight rate is the nominal overnight interest rate, π is the annual inflation rate, and GDP gap is the percentage shortfall of real GDP from its natural level, is an example of:

A) an active policy rule.
B) a passive policy rule.
C) discretionary policy.
D) an automatic stabilizer.