_____, the Time-Inconsistency Problem Is Eliminated

Multiple Choice

_____, the time-inconsistency problem is eliminated.

A) When an inflation or a recession is correctly anticipated
B) When lags associated with monetary and fiscal policy are extremely short
C) When discretionary macro policy is replaced with fixed policy rules that are well publicized
D) When expectations about an economy adjust very slowly
E) When the price level in an economy adjusts over time with changes in aggregate demand