The British central bank may choose to intervene in the free market currency exchange in which of the following cases?
A) The British pound sterling has appreciated, and the price of goods and services has appreciated in direct proportion.
B) There has been an unanticipated increase in Great Britain's money supply, but prices of goods and services have not changed.
C) The British pound undershoots in the short run.
D) There has been an unanticipated decrease in Great Britain's money supply, and the price of goods and services has changed proportionally.
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