If a Central Bank Follows an Activist Monetary Policy Rule

Multiple Choice

If a central bank follows an activist monetary policy rule,

A) full employment can always be maintained with little or no inflation
B) financial markets always need advance notice of any policy change so the central bank does not lose its credibility
C) the focus is generally on expected future economic conditions while current economic conditions are ignored
D) the focus is generally on the long-run inflation rate with little concern about unemployment
E) none of the above