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.
E)Lower nominal GDP.

Question

Quizplus · Accepted Answer

According to Keynesian economists, increasing the money supply leads to lower interest rates and greater investment, which in turn leads to higher real GDP. It may also lead to higher nominal GDP, but it would not lead to lower real GDP. Therefore, option C is not a consequence of increasing the money supply according to Keynesian economics.

According to Keynesian Economists,which of the Following Is Not a Consequence