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In the Long-Run ISLM Model and with Everything Else Held

Question 11

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of an expansionary monetary policy is to


A) increase real output and the interest rate.
B) not change either real output or the interest rate.
C) increase real output and leave the interest rate unchanged.
D) increase the interest rate and leave real output unchanged.

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