The Parameter R_r in the Taylor Rule Equation Tells How

Multiple Choice

The parameter r_r in the Taylor rule equation tells how much the central bank changes

A) the money supply in reaction to a gap between the actual and target inflation rates.
B) the exchange rate in reaction to a gap between the actual and target inflation rates.
C) the real interest rate in reaction to a gap between the actual and target inflation rates.
D) the unemployment rate in reaction to a gap between the actual and target inflation rates.