In the Keynesian model in the long run, an increase in the money supply will cause
A) an increase in output and a decrease in the real interest rate.
B) a decrease in the real interest rate but no change in output.
C) an increase in the real interest rate and an increase in output.
D) no change in either the real interest rate or output.
D
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Using the Rule of 70, if China's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?
A) 35 years B) 14 years C) 10 years D) 49 years
Between September 2013 and September 2014 the number of discouraged workers decreased from 852,000 to 698,000. Assuming the change resulted from discouraged workers starting to make specific efforts to find a job again, this change creates
A) an increase to the U-3 unemployment rate. B) a decrease to the U-3 unemployment rate. C) no change to the U-3 unemployment rate. D) a decrease in the labor force participation rate.