The Most Appropriate Monetary Policy Response to an Asset Price

The most appropriate monetary policy response to an asset price bubble for a central bank is to:

A) react to asset price bubbles because they can easily be identified.
B) not react to asset price bubbles because its actions will lead to a recession.
C) react to asset price bubbles aggressively because they cannot be popped any other way.
D) not react to asset price bubbles because monetary policy can only affect aggregate demand,not demand in a specific market.

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