In the Keynesian Model in the Long Run,a Decrease in the Money

question 22

Multiple Choice

In the Keynesian model in the long run,a decrease in the money supply will cause

• A)a decrease in output and an increase in the real interest rate.
• B)an increase in the real interest rate but no change in output.
• C)a decrease in the real interest rate and a decrease in output.
• D)no change in either the real interest rate or output.

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