In the New Keynesian Model, an Increase in the Money

Multiple Choice

In the New Keynesian model, an increase in the money supply

A) decreases the real interest rate, increases real aggregate output, increases the real wage rate, and decreases employment.
B) increases the real interest rate, decreases real aggregate output, decreases the real wage rate, and increases employment.
C) decreases the real interest rate, increases real aggregate output, decreases the real wage rate, and increases employment.
D) decreases the real interest rate, decreases real aggregate output, decreases the real wage rate, and increases employment.
E) decreases the real interest rate, increases real aggregate output, increases the real wage rate, and increases employment.