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