A financial shock of the Fed lowering the federal funds rate to the new MP curve will result in what value of expected inflation if total inflation was 3% after the shock? The image displays two graphs, one above the other. The graph on top is the IS-MP graph with the output gap on the horizontal axis and the real interest rate on the vertical axis. There are three curves on the graph. The first is a downward-sloping investment-savings curve. The next two are horizontal monetary policy curves. The first MP curve is labeled MP curve and intersects the investment-savings curve at a 2% real interest and a 2% output gap. The second MP curve is labeled new MP curve and intersects the investment-savings curve at a 1% real interest rate and a 0% output gap. The second graph is below the first. It displays a single upward-sloping Phillips curve with the output gap on the horizontal axis and unexpected inflation on the vertical axis. Given a 2% output gap, the Phillips curve shows a 1% inflation rate. Given a 0% output gap, the Phillips curve shows a 0% inflation rate