Beginning from a Position of Long-Run Equilibrium,an Expansionary Monetary Policy

Multiple Choice

Beginning from a position of long-run equilibrium,an expansionary monetary policy by the Bank of Canada causes

A) an increase in most market interest rates.
B) a fall in the general price level.
C) aggregate demand for goods and services to exceed potential output.
D) aggregate demand for goods and services to fall short of potential output.
E) an increase in the level of potential output.