Refer to the following figure to answer the next questions: 
-According to the figure, if the policy is fully expected, expansionary monetary policy will cause an economy initially in full-employment equilibrium to see real gross domestic product (GDP) :
A) increase from Y2 to Y3.
B) first increase from Y2 to Y3 but then decrease back to Y2.
C) stay at Y2.
D) decrease from Y2 to Y1.
E) increase from Y1 to Y2.
Correct Answer:
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