Multiple Choice
In the New Keynesian model,an increase in the money supply
A) has no effect on the price level.
B) causes a less than proportional increase in the price level.
C) causes an equiproportional increase in the price level.
D) causes a more than proportional increase in the price level.
E) causes a reduction in the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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