An increase in a country's money supply causes

Question

Accepted Answer

its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to appreciate.

Answer

its currency to appreciate in the foreign exchange market while a reduction in the money supply causes its currency to depreciate.

Answer

its currency to depreciate in the domestic market and appreciate in the foreign market.

Answer

no effect on the values of it currency in international markets.

Answer

its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to further depreciate.

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