According to the classical model,a 10-percent increase in the money supply,holding everything else constant,will lead to
A) a 10% increase in prices,a 10% increase in the real wage,and a 10% increase in interest rates.
B) a 10% increase in prices,a 10% increase in the money wage,and a 10% increase in interest rates.
C) a 10% increase in prices,a 10% increase in the money wage,and no change in interest rates.
D) a 10% increase in prices and no change in the money wage or interest rates.
E) none of the above.
Correct Answer:
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