Inflation targeting

A$.$

is a process that is irrelevant to the stability of the economy because of the

shortshort$-$run

neutrality of money.

B$.$

is a destabilizing policy because it requires the Bank of Canada to engage in inappropriate policy responses.

C$.$

creates

negativenegative

output gaps that must then be offset with fiscal policy stabilizers.

D$.$

is a stabilizing policy because the Bank of$$ Canada's policy adjustments act to stabilize the economy.

E$.$

should be replaced with

output gapoutput$$gap

targeting because of the

shortshort$-$run

neutrality of money.