If Consumption Depends Positively on the Level of Real Balances

Multiple Choice

If consumption depends positively on the level of real balances, and real balances depend negatively on the nominal interest rate in a neoclassical model, then:

A) the classical dichotomy still holds.
B) a rise in money growth leads to a fall in consumption and a rise in investment.
C) a rise in money growth leads to a rise in consumption and a fall in investment.
D) a rise in money growth leads to a rise in both consumption and investment.