According to Keynesian economists, which of the following is not a consequence of increasing the money supply?
A) a lower interest rate
B) greater investment
C) lower real GDP
D) higher real GDP

Question

Quizplus · Accepted Answer

According to Keynesian economists, increasing the money supply typically leads to a lower interest rate, which in turn stimulates greater investment and higher real GDP. However, it is not expected to reduce real GDP.

According to Keynesian Economists, Which of the Following Is Not