If the Target Inflation Rate Is 3 Percent and the Actual

Multiple Choice

If the target inflation rate is 3 percent and the actual rate of inflation falls below the target rate,

A) the AD curve will shift to the left.
B) the AD curve will shift to the right.
C) there will be an upward movement along the AD curve.
D) there will be a downward movement along the AD curve.
E) the AD will not shift, nor will there be a movement along the AD curve.