The Time Inconsistency of Policy Implies That

The time inconsistency of policy implies that

A) what policymakers say they will do is generally what they will do, but people don't believe them because of current policy.
B) when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply.
C) people will believe Fed policy will be more inflationary than the Fed claims.
D) None of the above is correct.