Which of the following statements best explains how anticipating the effects of expansionary monetary policy influences its effectiveness When the effects from a change to a more expansionary monetary policy are fully anticipated, we can expect that:（）
A. the inflation rate will decrease and increase the policy’s effectiveness.
B. interest rates will decrease in the short run and reduce the policy’s effectiveness.
C. contracts will reflect expected higher prices and reduce the policy’s effectiveness.
参考答案：C
解析：
When people correctly anticipate the effects of expansionary monetary policy before its occurrence, both the long-and short-run impact will be higher price levels, nominal interest rates, and little or no impact on real economic activity. This reduces the effectiveness of the policy.