Suppose the Bank of Canada Pursues a Policy That Leads

Suppose the Bank of Canada pursues a policy that leads to higher interest rates in Canada.How will this policy affect real GDP in the short run given that Canada is an open economy? This policy

A) reduces investment spending, consumption spending and net exports, all of which reduce GDP.
B) reduces investment spending and consumption spending, both of which reduce GDP.Net exports rise, which increases GDP.
C) reduces investment spending and consumption spending, both of which reduce GDP.Net exports fall, which increases GDP.
D) increases investment spending, consumption spending, and net exports, all of which increase GDP.
E) reduces investment spending and net exports, both of which raise GDP. Consumption spending rises, which increases GDP.