Which of the following statements is incorrect?
A. Shifts in the monetary policy reaction curve shift the dynamic aggregate demand curve in the same direction.
B. A fall in the central bank's target inflation rate shifts the monetary policy reaction curve to the left.
C. A fall in the central bank's target inflation rate causes the monetary policy reaction curve to flatten.
D. A decrease in the central bank's inflation target raises the real interest rate policymakers set at each level of inflation.
Answer: C
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