Suppose That Monetary Neutrality and the Fisher Effect Both Hold

Multiple Choice

Suppose that monetary neutrality and the Fisher effect both hold.An increase in the money supply growth rate raises.

A) the inflation rate and growth of real GDP.
B) the inflation rate but not the growth rate of real GDP.
C) the growth rate of real GDP, but not the inflation rate.
D) neither the inflation rate nor the growth rate of real GDP.