
According to the Central Bank Learning Story,a central bank behaving optimally will
A) choose the point where its indifference curve is just tanget to the Phillips curve.
B) ignore the Phillips Curve relationship.
C) choose the highest indifference curve that is still on the consumer's budget line.
D) only exploit the Phillips Curve in the long-run.
E) choose the point where its indifference curves are just tanget to the consumer's.
Correct Answer:
Verified
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