In the New Keynesian Model,an Increase in Current Government Spending

Multiple Choice

In the New Keynesian model,an increase in current government spending

A) increases output and leaves the real interest rate unchanged.
B) increases output and decreases the real interest rate.
C) decreases output and increases the real interest rate.
D) decreases output and decreases the real interest rate.
E) decreases output and increases the real wage rate.