In Order to Reduce the Expected Inflation Rate at Least

Multiple Choice

In order to reduce the expected inflation rate at least cost in terms of higher unemployment, the Fed could

A) suddenly reduce the growth rate of the money supply.
B) appeal to everyone's since of patriotic duty to reduce their wage demands.
C) announce a credible inflation reduction policy.
D) make policy according to the short-run Phillips curve tradeoff.
E) surprise everyone with a slowdown in the inflation rate.