According to the above table, the value of M1 is

A money supply increase in the New Keynesian model is not neutral because

A) consumers are fooled into working harder. B) the real interest falls, the quantity of output demanded rises, and firms supply more output. C) productivity rises, increasing output supply. D) bank lending rises.

Suppose there is a real appreciation. This real appreciation is more likely to cause a reduction in net exports when

A) domestic output is relatively low. B) foreign output is relatively high. C) the Marshall-Lerner condition does not hold. D) imports are not at all sensitive to price changes. E) exports and imports are relatively sensitive to price changes.