Under flexible exchange rate regime, a money-induced
A) decrease in U.S. prices causes an immediate appreciation of the foreign currencies against the dollar.
B) increase in U.S. prices causes an immediate appreciation of the foreign currencies against the dollar.
C) increase in U.S. prices causes an eventual appreciation of the foreign currencies against the dollar.
D) increase in U.S. prices causes an eventual depreciation of the foreign currencies against the dollar.
E) decrease in U.S. prices causes no change in foreign exchange rate.
Correct Answer:
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