In the New Keynesian Approach, an Increase in the Nominal

Multiple Choice

In the new Keynesian approach, an increase in the nominal money supply

A) raises real balances in the short run but not in the long run.
B) raises real balances in the long run but not in the short run.
C) raises real balances in both the short and long runs.
D) does not raise real balances in either the short or long runs.