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Which of the following statements is correct? The following figure shows the policyr reaction functions for two central banks; call them Green and Red. Which

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Which of the following statements is correct?

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The following figure shows the policyr 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 inflation is zero. [d] both (b) and (c). {e} none of the above

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