In the real business cycle model, a persistent increase in total factor productivity
A)has no effect on the real interest rate.
B)has a theoretically ambiguous effect on the nominal interest rate.
C)unambiguously increases the real interest rate.
D)unambiguously decreases the real interest rate.
E)has a theoretically ambiguous effect on the real interest rate.

Question

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The Answer of In the real business cycle model, a persistent increase in total factor productivity
A)has no effect on the real interest rate.
B)has a theoretically ambiguous effect on the nominal interest rate.
C)unambiguously increases the real interest rate.
D)unambiguously decreases the real interest rate.
E)has a theoretically ambiguous effect on the real interest rate.

In the Real Business Cycle Model, a Persistent Increase in Total