The long run effects of money supply change
A) ambiguous effect on the long-run values of the interest rate or real output,a proportional change in the price level's long-run value in the opposite direction.
B) proportional effect on the long-run values of the interest rate or real output,a proportional change in the price level's long-run value in the same direction.
C) no effect on the long-run values of the interest rate or real output,a proportional change in the price level's long-run value in the same direction.
D) no effect on the long-run values of the interest rate or real output,no change in the price level's long-run value.
E) ambiguous effect on the long-run values of the interest rate or real output,A disproportional change in the price level's long-run value in the same direction.
Correct Answer:
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