Persistently Expansionary Monetary Policy That Stimulates Aggregate Demand and Leads

Multiple Choice

Persistently expansionary monetary policy that stimulates aggregate demand and leads to inflation will

A) lead to higher rates of real output in the long run.
B) fail to increase real output once decision makers fully anticipate the inflation.
C) lead to lower nominal interest rates once decision makers fully anticipate the inflation.
D) permanently reduce the rate of unemployment below its natural rate.