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In the Simple Monetary Policy Rule Rtrˉ=mˉ(πtπˉ)R _ { t } - \bar { r } = \bar { m } \left( \pi _ { t } - \bar { \pi } \right)

Question 86

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In the simple monetary policy rule Rtrˉ=mˉ(πtπˉ) R _ { t } - \bar { r } = \bar { m } \left( \pi _ { t } - \bar { \pi } \right) , mˉ\bar { m }
Measures:


A) the marginal product of capital
B) the deviation of the inflation rate from the target rate
C) how sensitive monetary policy is to changes in inflation
D) the target rate of inflation
E) the debt to GDP ratio

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