If Higher Inflation Ensues from a Temporary Negative Supply Shock,and

Multiple Choice

If higher inflation ensues from a temporary negative supply shock,and in response,the central bank raises interest rates,then ________.

A) it is likely adopting a policy to stabilize inflation in the short run
B) short-run inflation will fluctuate around (first go higher then go lower than) the long run level of inflation
C) it will need to lower interest rates back to their original values to ensure that inflation returns to its original rate
D) all of the above
E) none of the above