Suppose the Congress of the United States Passes a Large

Suppose the Congress of the United States passes a large reduction in federal taxes. You should expect to see

A) an initial reduction in the value of the dollar followed by a period of gradual appreciation.
B) an initial increase in the value of the dollar followed by a period of gradual depreciation.
C) an initial reduction in the value of the dollar that continues until the Fed accommodates the Congress by increasing the rate of growth of the money supply.
D) an initial increase in the value of the dollar that continues until the Fed accommodates the Congress by restricting the rate of growth of the money supply.
E) none of the above.