An increase in the money supply in the Friedman-Lucas money surprise model
A) reduces aggregate output, raises the price level, and reduces the real interest rate.
B) increases aggregate output, reduces the price level, and reduces the real interest rate.
C) increases aggregate output, raises the price level, and reduces the real interest rate.
D) reduces aggregate output, raises the price level, and raises the real interest rate.
Correct Answer:
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