Which of the Following Descriptions Best Depicts the Short-Run Effect

Multiple Choice

Which of the following descriptions best depicts the short-run effect of a leftward shift of the monetary policy line?

A) An increase in the rate of interest and a decline in both the rate of inflation and real GDP
B) A decline in both the rate of inflation and the rate of interest, along with an increase in real GDP
C) An increase in the rate of interest, no change in the rate of inflation, and a decline in real GDP
D) A decline in real GDP and no change in either the rate of inflation or the rate of interest
E) A decline in the rate of inflation, the rate of interest, and real GDP