If a Point Lies on the Monetary Policy Reaction Curve

Multiple Choice

If a point lies on the monetary policy reaction curve, and at this point the inflation rate equals the target rate of inflation, we know that:

A) the real interest rate corresponding to this point is above the long-run real interest rate.
B) the real interest rate corresponding to this point is equal to the long-run real interest rate.
C) the real interest rate corresponding to this point is below the long-run real interest rate.
D) current output is above potential output.