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

A flat slope of the monetary policy reaction curve implies that central bankers are less concerned about keeping inflation close to its short-run target, as they are willing to tolerate some deviation from the target without adjusting their policy stance.

If the Slope of the Monetary Policy Reaction Curve Is