Question 7 Consider the neoclassical market clearing model where the price of goods is perfectly exible, and Where the demand for real money balances is of the form 150", 2'), Where Y denotes income and i the nominal interest rate. An increase in the supply of money A)[ ] must increase the level of prices in the same proportion if the interest rate has no effect on the demand for money. B)[ ] need not increase the level of prices if the demand for money does not depend on income. C)[ ] need not raise the level of prices if the interest rate is close to zero. D)[ ] will necessarily increase output and the price level because the interest rate decreases. E)[ ] A and C. F)[ ] B and C. G)[ ] None of the above