Which of the following would you expect to see in an open economy that just experienced a large increase in the money supply?
A) A depreciation of the currency
B) An expansion in GDP and imports
C) An expansion in exports
D) An expansion in net exports
E) All of the above

Question

Quizplus · Accepted Answer

An increase in the money supply leads to depreciation of the currency, expansion in GDP and imports, and expansion in net exports.

Which of the Following Would You Expect to See in an Open