A central bank that chooses a small value of $\theta$ _$\pi$ , the responsiveness of nominal interest rates to inflation, and a large value of $\theta$_Y, the responsiveness of nominal interest rates to output, is choosing to obtain less _____ at the expense of more _____. A) inflation; output B) output; inflation C) inflation variability; output variability D) output variability; inflation variability

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The Answer of A central bank that chooses a small value of $\theta$ _$\pi$ , the responsiveness of nominal interest rates to inflation, and a large value of $\theta$_Y, the responsiveness of nominal interest rates to output, is choosing to obtain less _____ at the expense of more _____. A) inflation; output B) output; inflation C) inflation variability; output variability D) output variability; inflation variability

A Central Bank That Chooses a Small Value Of θ\thetaθ π\piπ

A Central Bank That Chooses a Small Value Of $\theta$ _$\pi$