Problem
During the 1960s interest rates changed on a one-to-one basis with inflation rates (i.e., a change in inflation was matched by the same change in nominal interest rates) in the United States.
a) What is the implication of a one-to-one change between nominal interest rates and inflation for the slope of the monetary policy curve?
b) As inflation picked up in the early 1960s, how do you think policy makers (or Fed officials) should have responded in order to fight inflation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.