Which of the following does not determine the position and shape of a society’s production possibilities frontier?

An increase in the money supply will appreciate a country's currency

Indicate whether the statement is true or false

The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:

a. The creation of a supranational central bank reduced expected inflation. b. The supranational central bank increased the money supply rapidly, thereby causing interest rates to fall. c. Actually, interest rates in Italy exploded after the creation of the European Monetary Union, due to the lack of initial confidence in the European Central Bank. d. All of the above. e. None of the above.