The Monetary Policy Committee (MPC) of the Bank of England decides to increase the Bank Rate. According to the transmission mechanism of monetary policy, which of the following is most likely to occur in the short run?
An appreciation of the exchange rate of sterling, leading to a decrease in net exports
An increase in the price of pre-existing fixed-coupon government bonds
A rise in the market value of residential property due to reduced mortgage repayment burdens
An expansion in the demand for commercial bank loans by businesses looking to fund capital investment
