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When a Country's Central Bank Increases the Money Supply

Question 52

Multiple Choice

When a country's central bank increases the money supply:


A) the price level rises and the country's currency depreciates relative to other currencies in the world
B) the price level falls and the country's currency depreciates relative to other currencies in the world
C) the price level rises and the country's currency appreciates relative to other currencies in the world
D) the price level falls and the country's currency appreciates relative to other currencies in the world
E) the price level rises and the country's currency is unaffected

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