For each of the following changes, what happens to the real interest rate and output in the
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For each of the following changes, what happens to the real interest rate and output in the very short run, before the price level has adjusted to restore general equilibrium?
a. Wealth declines.
b. The money supply declines.
c. The future marginal productivity of capital declines.
d. Expected inflation rises.
e. Future income rises.
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