According to the Taylor rule, does the target for the overnight interest rate respond differently for an increase in inflation caused by an increase in aggregate demand and for an increase in inflation caused by a decrease in short-run aggregate supply? Explain whether there is or is not a difference in how the target for the overnight interest rate changes.

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The Answer of According to the Taylor rule, does the target for the overnight interest rate respond differently for an increase in inflation caused by an increase in aggregate demand and for an increase in inflation caused by a decrease in short-run aggregate supply? Explain whether there is or is not a difference in how the target for the overnight interest rate changes.

According to the Taylor Rule, Does the Target for the Overnight