In the simple monetary policy rule,a large
means that the central bank is aggressively fighting inflation.

Name: In the simple monetary policy rule,a large means that the central bank is aggressively fighting inflation.
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Question

In the simple monetary policy rule,a large  
means that the central bank is aggressively fighting inflation.

Quizplus · Accepted Answer

In the simple monetary policy rule, a large coefficient on the inflation rate (i.e. a large α in the rule: i = r* + α(π – π*)) means that the central bank is more aggressive in setting interest rates to combat inflation.

In the Simple Monetary Policy Rule,a Large