If monetary policymakers are more concerned about output fluctuations than inflation fluctuations:
A. they will choose a relatively steep monetary policy reaction curve in which movements in the real interest rates are small.
B. they will choose a relatively flat monetary policy reaction curve in which movements in the real interest rates are small.
C. they will choose a relatively flat monetary policy reaction curve in which movements in the real interest rates are large.
D. they will choose a relatively steep monetary policy reaction curve in which movements in the real interest rates are large.
Answer: B
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