The classical model predicts that, in the short-run, a tax cut finance

The classical model predicts that, in the short-run, a tax cut financed by an increase in the money supply would

a. leave output and the price level unchanged.
b. increase the price level but leave output unchanged.
c. increase output but and reduce the price level.
d. increase output and the price level by increasing aggregate demand.
e. None of the above.

ANSWER

B