According to Real Business Cycle Theory, If the Bank of Canada

Multiple Choice

According to real business cycle theory, if the Bank of Canada increases the quantity of money when real GDP decreases, real GDP

A) will increase but only temporarily.
B) and the price level will both be unaffected.
C) will increase permanently.
D) will be unaffected, but the price level will rise.
E) will decrease due to the inefficiencies introduced into production as a result.