If Initially $\bar { M }$ = 5 $\vec { v }$

If initially, $\bar { M }$ = 5%, $\vec { v }$
= 3%, $\bar { P }$
= 2%, and $\bar { Y } _ { R }$
= 6% and then because of economic uncertainty $\vec { v }$
Falls to 1%, what should the Fed do?

A) Quietly raise $\bar { Y } _ { R }$
To 8% to offset the decrease in $\vec { v }$
.
B) Publicly lower $\bar { M }$
To 3% so that $\bar { M }$
- $\vec { v }$
Stays constant at 2%.
C) Publicly demonstrate a commitment to keep $\bar { M }$
+ $\vec { v }$
At 8% by raising $\bar { M }$
.
D) Quietly raise $\bar { M }$
Without telling anyone, as only unexpected inflation is expansionary.