Which one of the following statements is the MOST accurate?

Question

Quizplus · Accepted Answer

The statement that is most accurate is that "Given PUS and YUS, when the money supply rises, the dollar interest rate declines and the dollar depreciates against the euro." This is due to the fact that an increase in the money supply leads to a decrease in the interest rate, as there is more money available to lend out. This, in turn, leads to a decrease in the value of the dollar, as investors seek higher returns elsewhere. The depreciation of the dollar against the euro occurs because the euro becomes relatively more valuable compared to the dollar.

Which One of the Following Statements Is the MOST Accurate