Multiple Choice
In the New Keynesian model, an increase in the money supply
A) increases output and increases the real interest rate.
B) increases output and decreases the real interest rate.
C) decreases output and increases the real interest rate.
D) decreases output and decreases the real interest rate.
E) decreases output and increases the real wage rate.
Correct Answer:

Verified
Correct Answer:
Verified
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