Assume that the economy is in the intermediate range of the aggregate supply cur

Question

Assume that the economy is in the intermediate range of the aggregate supply curve. From the Keynesian perspective, an increase in the money supply will

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A. lower the interest rate, investment, real GDP, and the price level.

B. raise the interest rate, but lower investment, real GDP, and the price level.

C. raise the interest rate, investment, real GDP, and the price level.

D. lower the interest rate, and raise investment, the price level, and real GDP.

E. none of the above.

Explanation / Answer

B. raise the interest rate, but lower investment, real GDP, and the price level. @

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