Multiple Choice
-In the new classical model in the figure above, an anticipated expansionary monetary policy ________.
A) shifts the economy from point 1 to point 2 to point 3
B) shifts the economy from point 1 to point 4 to point 3
C) shifts the economy from point 1 to point 3
D) shifts the economy from point 3 to point 1
Correct Answer:

Verified
Correct Answer:
Verified
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