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If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________. A) the nominal interest B) the real interest rate C) aggr…

If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________. A) the nominal interest B) the real interest rate C) aggr…
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If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________.

A) the nominal interest
B) the real interest rate
C) aggregate output
D) all of the above

User Gilbert Giesbert
by
8.3k points

1 Answer

4 votes

Answer:

B) the real interest rate

User Matt Vaughan
by
7.8k points
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