Recall Application 2, "Increased Political Independence for the Bank of England

Multiple Choice

Recall Application 2, "Increased Political Independence for the Bank of England Lowered Inflation Expectations," to
answer the following questions:
-According to the application, the study by Mark Spiegel concluded that inflation expectations decreased after the Bank of England announced political independence because:

A) the difference between the nominal GDP growth rate and real GDP growth rate decreased.
B) the difference in the interest rates of inflation adjusted bonds and non- inflation adjusted bonds decreased.
C) the difference in the interest rates of inflation adjusted bonds and non- inflation adjusted bonds increased.
D) the difference between nominal and real GDP decreased.