According to Keynesian theory, assuming the liquidity trap does not apply, and according to monetarist theory, assuming the increase is unanticipated, what is the short-run effect on the level of output of an increase in the money supply?
- AKeynesian theory increase; monetarist theory increase
- BKeynesian theory increase; monetarist theory decrease
- CKeynesian theory unchanged; monetarist theory increase
- DKeynesian theory unchanged; monetarist theory decrease