Under a fixed exchange rate regime, a central bank that does not want to acquire international reserves to keep its currency from ________ will decide to ________ its currency

An externality refers to economic events outside a market

Indicate whether the statement is true or false

Assuming money neutrality in the classical model, a 10% increase in the nominal money supply would cause

A) a 10% increase in the real money supply. B) a 10% decrease in the real money supply. C) no change in the real money supply. D) a less-than-10% change in the price level due to a shift in the aggregate supply curve.