Unanticipated expansionary monetary policy will increase economic growth and push inflation upward while lowering real interest rates. This will cause
a. an increase in the demand for foreign currencies and a decline in the foreign exchange value of the dollar.
b. a decrease in the demand for foreign currencies and a decline in the foreign exchange value of the dollar.
c. an increase in the demand for foreign currencies and an increase in the foreign exchange value of the dollar.
d. a decrease in the demand for foreign currencies and an increase in the foreign exchange value of the dollar.
A
Economics