The Economy Is Experiencing Both Low Output and High Inflation

Multiple Choice

The economy is experiencing both low output and high inflation. Which of the following is true?

A) If the Chancellor of the Exchequer dislikes high inflation more than low output, he would like the Bank of England to contract the money supply.
B) If the Chancellor of the Exchequer dislikes high inflation more than low output, he would like the Bank of England to expand the money supply.
C) If the Chancellor of the Exchequer dislikes low output more than high inflation, he would like the Bank of England to contract the money supply.
D) In any situation the Chancellor of the Exchequer will always like the Bank of England to contract the money supply.