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Under the optimal monetary policy, the central bank should let the nominal interest rate a.rise when the inflation gap rises and decline when the output
Under the optimal monetary policy, the central bank should let the nominal interest rate
a.rise when the inflation gap rises and decline when the output gap rises.
b.decline when the inflation gap rises and rise when the output gap rises.
c.decline when the inflation gap or the output gap rises.
d.rise when the inflation gap or the output gap rises.
e.rise only when the inflation gap rises.
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