Refer to the Information Provided in Figure 32

Multiple Choice

Refer to the information provided in Figure 32.3 below to answer the question(s) that follow. Figure 32.3
-Refer to Figure 32.3. Suppose the economy is at Point A. According to the rational expectation theory, an unanticipated increase in money supply

A) leaves the economy at Point A.
B) moves the economy to Point B.
C) moves the economy to Point C.
D) moves the economy to Point D.