If the Fed announces a new policy of slower monetary growth it will result in lower inflation and no change in output only if
A)the policy is credible and price expectations are reduced.
B)the policy is time consistent and expectations remain constant.
C)the policy is time inconsistent and expectations increase.
D)Both A and B are correct.

Question

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The Answer of If the Fed announces a new policy of slower monetary growth it will result in lower inflation and no change in output only if
A)the policy is credible and price expectations are reduced.
B)the policy is time consistent and expectations remain constant.
C)the policy is time inconsistent and expectations increase.
D)Both A and B are correct.

If the Fed Announces a New Policy of Slower Monetary