If the slope of the monetary policy reaction curve is relatively flat, it means that central bankers are:
A) very concerned about keeping inflation close to the target rate.
B) not concerned at all about inflation.
C) less concerned about keeping inflation close to its short-run target.
D) not going to let inflation deviate from its target at all.

Question

Quizplus · Accepted Answer

If the slope of the monetary policy reaction curve is relatively flat, it means that central bankers are less concerned about keeping inflation close to its short-run target. This suggests that they may be willing to tolerate some deviation from the target rate in order to prioritize other objectives, such as employment or economic growth.

If the Slope of the Monetary Policy Reaction Curve Is