If a country with floating exchange rates uses an expansionary monetary policy,the domestic interest rate _____,the demand for the domestic currency _____,the supply of the domestic currency _____,and the effect on the exchange rate is _____.
A) falls;falls;rises;ambiguous
B) rises;rises;falls;an increase
C) falls;falls;rises;a decrease
D) falls;remains unchanged;rises;a decrease
Correct Answer:
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