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According to the Taylor rule, the central bank should decrease the short-term interest rate if inflation is _____its target, or if real GDP growth is
According to the Taylor rule, the central bank should decrease the short-term interest rate if inflation is _____its target, or if real GDP growth is ______its target.
a. above; below
b. below; above
c. above; above
d. below; below
e. None of the other answers are correct.
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