he Taylor rule: Multiple Choice is a monetary policy rule. states that nominal interest rates should rise by 0.5 percentage points for every 1 percentage point increase in inflation above target. states that nominal interest rates should rise by 1.5 percentage points whenever inflation is 1 percentage point higher than target. states that real interest rates should rise by 1.5 percentage points for every 1 percentage point increase in inflation above target. states that growth of the money supply should fall by 1 percentage point for every 1.5 percentage point increase in inflation above target