New Keynesian Economists Question the Credibility of Cold Turkey Disinflation

Multiple Choice

New Keynesian economists question the credibility of cold turkey disinflation in the real world because

A) the independence of central banks allows them to disregard public opinion.
B) households and businesses do not form their expectations rationally.
C) a reduction in money growth may reduce output and employment substantially in the short run.
D) central banks lack the tools to bring the inflation rate down even in the long run.