Compared to the Baseline, the Long-Run Effect of a Monetary

Multiple Choice

Compared to the baseline, the long-run effect of a monetary policy change to reduce the rate of inflation is for there to be

A) an increase in investment and net exports along with a decrease in consumption.
B) an increase in consumption, a decrease in investment, and no change in net exports.
C) an increase in consumption and net exports and a decrease in investment.
D) no change in consumption, investment, and net exports.
E) no change in consumption and investment, but a decrease in net exports.