At time t=0, R_$= 10%, R= 10%, and E_$/=E_$/^e=1. Assume that European Central Bank permanently contracts money supply in Europe by 25% at time t=1. In addition, assume the following: 1 . The policy change was not anticipated at t=0 2. Prices are fixed in the short run 3. Prices completely adjust to the change in money supply in the long run 4. Output is always fixed at Y 5. R_$= 10% at t=1 Select the most appropriate option:

	A.	E$/e>1.33; E$/>1.33; R>10% at t=1 and E$/e=1.33; E$/=1.33; R=10% in the long run
	B.	E$/e=1.33; E$/>1.33; R>10% at t=1 and E$/e=1.33; E$/=1.33; R>10% in the long run
	C.	E$/e=1.25; E$/>1.25; R>10% at t=1 and E$/e=1.25; E$/=1.25; R=10% in the long run
	D.	E$/e=1.33; E$/>1.33; R>10% at t=1 and E$/e=1.33; E$/=1.33; R=10% in the long run
	E.	E$/e<1.25; E$/>1.25; R>10% at t=1 and E$/e=1.25; E$/=1.25; R=10% in the long run