Which of the Following Statements Are Correct? the Expectational Effect

Multiple Choice

Which of the following statements are correct? The expectational effect of inflation
1) is nullified as soon as the government promises zero inflation;
2) often plays a role in accelerating inflation;
3) is not directly a monetary cause of inflation.

A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 2 and 3