If people have rational expectations a monetary policy contraction that is announced and is credible could ?

Increase inflation but would decrease unemployment by an unusually large amount

reduce inflation with little or no increase in unemployment

increase inflation with little or no decrease in unemployment

reduce inflation but it would increase unemployment by an unusually large amount

If people have rational expectations a monetary policy contraction th

1.	If people have rational expectations a monetary policy contraction that is announced and is credible could ?
A.	reduce inflation with little or no increase in unemployment
B.	Increase inflation but would decrease unemployment by an unusually large amount
C.	increase inflation with little or no decrease in unemployment
D.	reduce inflation but it would increase unemployment by an unusually large amount
Answer» B. Increase inflation but would decrease unemployment by an unusually large amount