According to New Classical Economists, Sustained Expected Increases in the Nominal

question 71

Multiple Choice

According to new classical economists, sustained expected increases in the nominal money supply will lead to

• A)increases in output in the short run and sustained increases in prices in the long run.
• B)sustained increases in prices, with no short-run increases in output.
• C)short-run increases in prices and output, with a stable price level and no increases in output in the long run.
• D)sustained increases in both prices and output in the long run.