A decrease in inflation expectations:

Options:

A) shifts the Phillips Curve down, so that a given level of unemployment corresponds to a lower level of inflation

B) shifts the Phillips Curve to the right, so that a given level of inflation corresponds to a higher level of unemployment

C) shifts the Phillips Curve up, so that a given level of unemployment corresponds to a higher level of inflation

D) shifts the Phillips Curve to the left, so that a given level of inflation corresponds to a higher level of unemployment

E) none of the other answers is correct.