Considering the concept of 'Rational Expectations' in macroeconomic theory, which of the following scenarios best illustrates a potential limitation of monetary policy in controlling inflation?"
A. Central bank announces an unexpected increase in interest rates, but inflation continues to rise due to external supply shocks.
B. After a reduction in the money supply, inflation decreases but unemployment rises significantly.
C. People anticipate the central bank's inflation-targeting actions, leading to preemptive price and wage increases that nullify the policy's effectiveness.
D. Expansionary monetary policy leads to increased investment and consumption, temporarily boosting economic growth.