Which of the following is true about the long run effects of a contractionary monetary policy in Keynesian model?
A)Output declines,price level declines,real interest rate rises.
B)Output increases,price level increases,real interest rate declines.
C)Output does not change,price level decreases,real interest rate does not change.
D)Output declines,price level declines,real interest rate declines.

Question

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The Answer of Which of the following is true about the long run effects of a contractionary monetary policy in Keynesian model?
A)Output declines,price level declines,real interest rate rises.
B)Output increases,price level increases,real interest rate declines.
C)Output does not change,price level decreases,real interest rate does not change.
D)Output declines,price level declines,real interest rate declines.

Which of the Following Is True About the Long Run