The Canadian Experience with Inflation and Unemployment in the Early

Multiple Choice

The Canadian experience with inflation and unemployment in the early 1990s has this to say about policy rules:

A) a central bank independent of political pressure may thereby not be serving the public's politically-revealed preferences.
B) a central bank bowing to political pressure cannot get the inflation rate below the unemployment rate.
C) a constant-growth-rate-of-money rule cannot stabilize inflation if unemployment is allowed to vary substantially.
D) a constant-growth-rate-of-high-powered-money rule allows too much variation in the growth of the actual money supply to hold down inflation.