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

Multiple Choice

Compared to the baseline, the short-run effect of a monetary policy change to lower inflation is for

A) consumption and net exports to decline, while investment stays constant.
B) consumption, investment, net exports, and government purchases to decline.
C) consumption, investment, and net exports to decline.
D) consumption and investment to decline while net exports increase.
E) consumption and net exports to increase while investment falls.