In the New Keynesian Rational Expectations Model, in the Output

Multiple Choice

In the New Keynesian Rational Expectations Model, in the output demand relationship,

A) output increases when the nominal interest rate increases.
B) the difference between current output and future output increases when the nominal interest rate increases.
C) the difference between current output and future output increases when the natural real interest rate increases.
D) the difference between current output and future output increases when anticipated future inflation decreases.
E) the difference between current output and future output increases when the actual real interest rate increases.