When the Bank of Canada Lowers the Growth Rate of the Money

Multiple Choice

When the Bank of Canada lowers the growth rate of the money supply, what must it take into account?

A) the short-run effects on production and inflation
B) the long-run effects on production and inflation
C) the long-run effect on production and the short-run effect on inflation
D) the short-run effect on production and the long-run effect on inflation