In the Real Business Cycle Model, a Persistent Increase in Total

Multiple Choice

In the real business cycle model, a persistent increase in total factor productivity

A) has no effect on the real interest rate.
B) unambiguously increases the real interest rate.
C) unambiguously decreases the real interest rate.
D) has a theoretically ambiguous effect on the real interest rate.
E) has a theoretically ambiguous effect on the nominal interest rate.