Compared to the fixed-price/fixed-wage model, in the Keynesian model w

Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed wage, an increase in the money stock will cause output to rise by

a. less while the interest rate will fall by more.
b. less and the interest rate to fall by less.
c. more but the interest rate to fall by less.
d. more and the interest rate to fall by more.

 

ANSWER

B

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