In the New Keynesian Model, an Increase in the Money

question 80

Multiple Choice

In the New Keynesian model, an increase in the money supply

• A)increases output and increases the real interest rate.
• B)increases output and decreases the real interest rate.
• C)decreases output and increases the real interest rate.
• D)decreases output and increases the real wage rate.
• E)decreases output and decreases the real interest rate.

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