Question: Can someone answer with the right answer Please? In the basic New Keynesian model with inflation, if the natural rate of interest decreases and the

Can someone answer with the right answer Please?

In the basic New Keynesian model with inflation, if the natural rate of interest decreases and the central bank does not

change the nominal interest rate in response, then

A. output increases and inflation goes down.

B. output declines and inflation goes down.

C. output declines and inflation goes up.

D. output does not change and inflation does not change.

E. output increases and inflation goes up

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