Which of the following is correct? An increase in the supply of euros by the European Central Bank will
A) raise the external value of the euro because it will stimulate economic growth in the Eurozone
B) raise the external value of the euro because it will lead to higher Eurozone interest rates
C) reduce the external value of the euro because of inflation fears in the Eurozone
D) decrease the external value of the euro because it will force other countries to raise their interest rates
Correct Answer:
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