Starting from a Position of Macroeconomic Equilibrium at Below the Full-Employment

Multiple Choice

Starting from a position of macroeconomic equilibrium at below the full-employment level of real GDP, an increase in the money supply will:

A) raise interest rates, prices, and reduce real GDP.
B) raise interest rates, lower prices, and leave real GDP unchanged.
C) Raise interest rates, lower prices, and leave real GDP unchanged.
D) lower interest rates, raise prices, and increase real GDP.