Consider a Country That Is Operating Under a System of Flexible

Consider a country that is operating under a system of flexible exchange rates.If the central bank in this country imposes an expansionary monetary policy,it would be likely to experience
1) a depreciation of its currency;
2) short-term capital outflows;
3) an appreciation of its currency.

A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 2 and 3