The "Time Inconsistency" Argument Is That a Downward Shift of the Short-Run

Multiple Choice

The "time inconsistency" argument is that a downward shift of the short-run Phillips Curve,which comes about with a ________ of inflationary expectations,is more likely when monetary policy ________.

A) lowering,follows a rigid rule
B) lowering,is at the discretion of policymakers
C) raising,follows a rigid rule
D) raising,is at the discretion of policymakers