An Unexpected Shift to a More Expansionary Monetary Policy Will

Multiple Choice

An unexpected shift to a more expansionary monetary policy will generally

A) stimulate aggregate demand and real output as soon as the policy is instituted.
B) exert its primary impact on aggregate demand and real output 6 to 15 months in the future.
C) cause inflation in the short run, but expand real output in the long run.
D) increase real interest rates in the short run.