Assume a Starting Position of Macroeconomic Equilibrium at the Full-Employment

Multiple Choice

Assume a starting position of macroeconomic equilibrium at the full-employment level of real GDP.In the short run,what effect will a decrease in the money supply have?

A) It will lower real interest rates, raise the price level, and increase real GDP.
B) It will raise real interest rates, lower the price level, and leave real GDP unchanged.
C) It will raise nominal interest rates, lower the price level, and leave real GDP unchanged.
D) It will raise real interest rates, lower the price level, and reduce real GDP.