In the Long-Run ISLM Model and with Everything Else Held

question 53

Multiple Choice

In the long-run ISLM model and with everything else held constant, the long-run effect of an expansionary monetary policy is to ________.

• A)increase real output and the interest rate
• B)not change either real output or the real interest rate
• C)increase real output and leave the interest rate unchanged
• D)increase the interest rate and leave real output unchanged

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