-In the above figure, the economy is at point A. The inflation rate falls by two percentage points and people correctly anticipated the fall, perhaps because they correctly anticipated the Fed's monetary policy. As a result, the economy moves to point
A) A, that is, there is no movement.
B) B.
C) C.
D) D.

Question

-In the above figure, the economy is at point A. The inflation rate falls by two percentage points and people correctly anticipated the fall, perhaps because they correctly anticipated the Fed's monetary policy. As a result, the economy moves to point
A) A, that is, there is no movement. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, the economy is at point A. The inflation rate falls by two percentage points and people correctly anticipated the fall, perhaps because they correctly anticipated the Fed's monetary policy. As a result, the economy moves to point
A) A, that is, there is no movement. 
B) B. 
C) C. 
D) D.

-In the Above Figure, the Economy Is at Point A the Inflation