Even a Monetary Policy Based on a Rigid High-Powered Money

Multiple Choice

Even a monetary policy based on a rigid high-powered money growth rate rule can lack policy credibility,due in part to ________,while a policy that targets the inflation rate itself ________.

A) lags,must have policy credibility by definition
B) lags,can lack credibility due to both lags and multiplier certainty
C) multiplier uncertainty,must have policy credibility by definition
D) multiplier uncertainty,can lack credibility due to both lags and multiplier uncertainty