Suppose Workers and Firms Come to Expect an Expansionary Monetary

Multiple Choice

Suppose workers and firms come to expect an expansionary monetary policy and the resulting inflation.What do some economists believe will occur when workers and firms believe this?  

A)  Workers and firms will act so as to prevent price increases from occurring. 
B)  The actions of workers and firms will lead to a further increase in output. 
C)  Neither output nor employment will be affected by the expansionary policy. 
D)  The monetary authority will be forced to cancel the expansionary policy.