Consider two economies that are identical, with the exception that one has a high marginal propensity to consume (mpc) while the other has a low mpc. If the money supply is increased by the same amount in each economy, the high mpc economy will experience:
A. A larger increase in output.
B. A smaller decrease in the interest rate.
C. A smaller increase in output.
D. A larger decrease in the interest rate.
Choose the correct answer from the options given below:
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