According to the Natural Rate Hypothesis, at What Cost Can

Multiple Choice

According to the natural rate hypothesis, at what cost can unemployment be maintained below the natural rate?  

A)  Unemployment can be maintained below the natural rate only at the cost of negative net exports. 
B)  Unemployment can be maintained below the natural rate only at the cost of higher taxes. 
C)  Unemployment can be maintained below the natural rate only at the cost of ever-increasing inflation. 
D)  Unemployment can be maintained below the natural rate only at the cost of ever-increasing federal budget deficits.