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

Multiple Choice

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

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