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In the Keynesian Model in the Long Run,a Decrease in the Money

Question 51

Multiple Choice

In the Keynesian model in the long run,a decrease in the money supply will cause


A) a decrease in output and an increase in the real interest rate.
B) an increase in the real interest rate but no change in output.
C) a decrease in the real interest rate and a decrease in output.
D) no change in either the real interest rate or output.

Correct Answer:

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