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 its price level:
A) increase from P1 to P3.
B) increase from P1 to P2.
C) initially increase from P1 to P2 and over time increase to P3.
D) decrease from P3 to P2.
E) decrease from P3 to P1.
Correct Answer:
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