In the Real Business Cycle Model, a Persistent Increase in Total

Multiple Choice

In the real business cycle model, a persistent increase in total factor productivity

A) has no effect on the real interest rate.
B) has a theoretically ambiguous effect on the nominal interest rate.
C) unambiguously increases the real interest rate.
D) unambiguously decreases the real interest rate.
E) has a theoretically ambiguous effect on the real interest rate.