For This Question,assume That the Economy Is Initially Operating at the Natural

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.A one- time 5% reduction in the nominal money supply will cause

A) a 5% reduction in the price level in the medium run.
B) a 5% increase in the interest rate (i) in the medium run.
C) a 5% reduction in the real money supply in the medium run.
D) all of the above