The most likely impact of an unanticipated increase in the money supply is a(n):
a. increase in the real interest rate, which in turn stimulates investment and GDP
b. decrease in the real interest rate, which in turn stimulates investment and GDP.
c. decrease in real output, which causes the real interest rate to decline and in turn stimulate investment and GDP.
d. increase in real output, which causes the real interest rate to decline.
b
Economics
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