The Most Likely Impact of an Unanticipated Increase in the Money

Multiple Choice

The most likely impact of an unanticipated increase in the money supply is a(n) :

A) ​increase in the real interest rate, which in turn stimulates investment and GDP.
B) ​decrease in the real interest rate, which in turn stimulates investment and GDP.
C) ​decrease in real output, which causes the real interest rate to decline and in turn stimulate investment and GDP.
D) ​increase in real output, which causes the real interest rate to decline.