The recent new payment system 'cryptcoin' reduces households' real money demand. What are the effects on output and the real interest rate in the short run? (please explain why) A) Real interest rate decreases, output decreases B) Real interest rate decreases, output increases C) Real interest rate increases, output increases D) Real interest rate increases, output decreases

The recent new payment system 'cryptcoin' reduces households' real money demand. What are the effects on output and the real interest rate in the short run? (please explain why) A) Real interest rate decreases, output decreases B) Real interest rate decreases, output increases C) Real interest rate increases, output increases D) Real interest rate increases, output decreases

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Expectations Theory And The Economy

Section: Chapter Questions

Problem 15QP

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