If consumption depends positively on the level of real balances, and real balances depend negatively on the nominal interest rate, 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.
Correct Answer:
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