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Add new option (e):None of the above The following gure shows the policy reaction functions for two central banks: call them Green and Red. Which

Add new option (e):None of the above

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The following gure shows the policy reaction functions for two central banks: call them Green and Red. Which of the following statements is correct? (a) The Green central bank responds relatively less to inflation than the Red central bank. (b) The Green central bank responds relatively more to inflation than the Red central bank. (c) Both central banks would have the same real policy rate when ination is zero. (d) both (b) and (c)

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