In the Monetary Intertemporal Model, the Long-Run Effects of an Increase

question 26

Multiple Choice

In the monetary intertemporal model, the long-run effects of an increase in the money supply growth rate include

• A) an increase in output and an increase in the real wage.
• B) an increase in output and a decrease in the real wage.
• C) a decrease in output and an increase in the real wage.
• D) a decrease in output and a decrease in the real wage.
• E) an increase in output and a decrease in the real interest rate.

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