During 2009, a Country Wants to Reduce Its Inflation Rate

Multiple Choice

During 2009, a country wants to reduce its inflation rate while maintaining its unemployment rate at its natural unemployment rate.To achieve these goals, the government should

A) announce a credible increase in the inflation rate.
B) announce a credible slowdown in the inflation rate.
C) surprise the public with an increase in the inflation rate.
D) surprise the public with a decrease in the inflation rate.
E) announce a credible slowdown in the inflation rate and then actually increase the inflation rate.