6. According to the Taylor principle, to ensure the stability of inflation, the central bank should increase

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6. According to the Taylor principle, to ensure the stability of inflation, the central bank should increase the nominal interest rate by than 1 percentage point in response to a 1-percentage-point increase in the

.

a. more, output gap

b. more, inflation rate

c. less, output gap

d. less, inflation rate

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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