Suppose the output ratio is 100 and the inflation rate is 5 percent. Given these conditions, why

Question:

Suppose the output ratio is 100 and the inflation rate is 5 percent. Given these conditions, why will policymakers be more likely to pursue a zero inflation target if they have a long time horizon and a low rather than a short time horizon and a high Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...