Assume output Y and the real interest rate r are determined exogenously, and demand for real money balances is given by (M/P) d = L(i, Y ).

Assume output Y and the real interest rate r are determined exogenously, and demand for real money balances is given by (M/P) d = L(i, Y ). Suppose some new technology arrives that causes people to expect Y to rise next year (with no change in Y this year). Suppose also that the central bank is expected to keep the money supply M unchanged both this year and next year. What will happen to the current price level P (and why)?