Monetary Policy Credibility Has the Benefit of ________

Multiple Choice

Monetary policy credibility has the benefit of ________.

A) stabilizing inflation in the short run when faced with positive demand shocks
B) stabilizing economic activity in the short run when faced with positive demand shocks
C) transmitting the effect of aggregate demand shocks onto short-run aggregate supply
D) enhancing the job opportunities of Federal Reserve officials after they leave the central bank