In the Aggregate Demand-Aggregate Supply Model, the Short-Run Effects of an Unanticipated

Multiple Choice

In the aggregate demand-aggregate supply model, the short-run effects of an unanticipated increase in the money supply will be

A) lower real interest rates and an increase in aggregate demand.
B) higher real interest rates and an increase in aggregate demand.
C) lower real interest rates and a reduction in aggregate demand.
D) higher real interest rates and a reduction in aggregate demand.