If Monetary Policymakers Are More Concerned About Output Fluctuations Than

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.