Anonymous
Anonymous asked in Social ScienceEconomics · 2 months ago

In the short run, an increase in a country's money supply causes its interest rate to ---- and its currency to ----.?

A

rise; appreciate

B

rise; depreciate

C

fall; appreciate

D

fall; depreciate

2 Answers

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  • 2 months ago
    Favourite answer

    Increase in money supply causes the interest rate to fall and as a result a depreciation of the currency

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  • Oiy
    Lv 6
    2 months ago

    It would be D, I'm so sure.

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