In an AD-AS Model with an Upward-Sloping AS-Curve, the Most

Multiple Choice

In an AD-AS model with an upward-sloping AS-curve, the most likely effects of fiscal expansion would be

A) an increase in prices and interest rates, but a decrease in real money balances
B) an increase in output, prices, and real money balances
C) an increase in consumption and a decrease in investment with no change in output
D) a decrease in unemployment but an increase in interest rates and real money balances
E) a decrease in consumption, but an increase in net exports and investment