The Parameter (Which Governs the Slope of the Monetary

Multiple Choice

The parameter (which governs the slope of the monetary policy reaction function) is determined by each of the following except

A) the term from Okun's law which tells us the change in the unemployment rate produced by a one percent change in real GDP relative to potential output.
B) the term which tells us the amount by which central bankers raise the real interest rate when inflation is one percent per year higher.
C) the interest sensitivity of government purchases.
D) the multiplier.