When is the central bank most likely to raise interest rates?

Select one:

a.

The central bank would raise interest rates for sure, in all of these situations

b.

When the economy is producing as much as possible

c.

When the economy could produce more, but only if wages and prices started to rise a lot

d.

When the economy could be producing a lot more without prices rising much

e.

The central bank is equally likely to raise rates in all of these situations