Central Banks Generally Conduct Their Monetary Policy with Two Goals

Central banks generally conduct their monetary policy with two goals in mind: to keep economic activity high and to keep inflation low; however, they have to recognize that

A) there is an inherent conflict between these goals
B) monetary policy can affect economic activity only in the short run
C) they can control inflation fairly effectively but may not be able to influence GDP growth
D) a lower interest rate now may mean higher a inflation rate in the future
E) all of the above

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