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

Multiple Choice

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

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